Thailand's Economy is Projected to Grow by 3% in 2024 with Government Stimulus Measures

Economic Growth Forecast

Thailand's economy is set to grow by 3% in 2024, supported by government stimulus measures aimed at sustaining growth momentum. Deputy Finance Minister Julapun Amornvivat announced on Friday that, while the current forecast stands at 2.7%, growth in 2025 is anticipated to exceed 3%.

Impact of Interest Rate Cuts

This forecast follows the central bank's recent decision to cut the key interest rate by 25 basis points to 2.25%, marking the first reduction since 2020. The rate cut is a response to ongoing government calls to lower borrowing costs and stimulate growth in Southeast Asia's second-largest economy, which recorded a 2.3% year-on-year expansion in Q2 2024, a significant rise from last year's 1.9% growth.

Government Initiatives

To support economic recovery, the government plans to hold a meeting next month to discuss targeted measures, including tax breaks for flood-affected tourism areas and strategies to enhance consumption. The second phase of the "digital wallet" stimulus program will also advance, following the initial rollout of a $14 billion scheme that distributes 10,000 baht ($302) to approximately 45 million people.

Future Support Factors

Additionally, the economy will benefit from increased foreign investment and expedited government budget disbursement, according to Julapun.