World Bank Upgrades Thailand’s 2023 GDP Growth as Global Economy Recovers and Tourists Return

The World Bank on Wednesday lifted its growth forecast for Thailand’s economy from 3.6% to 3.9% for this year due to higher-than-expected demand from China, Europe, and the United States, as well as private consumption growth and a revival in tourism.

Last year, the gross domestic product of Thailand grew by 2.6%.

According to the World Bank’s semi-annual Thailand Economic Monitor, growth is predicted to slow to 3.6% in 2024 and to 3.4% in 2025, with tourism and private consumption being the main drivers of growth amid slowing foreign demand. 

As for inflation, the World Bank anticipates that it will drop to 2% in 2023 thanks to falling global energy prices. However, excluding volatile food and energy prices, core inflation has remained higher than it was prior to the COVID-19 pandemic. 

The positive tourism forecast has been bolstered by the return of tourists, especially Chinese travelers. The World Bank estimates foreign arrivals to exceed 28.5 million, or 84% of the 2019 level, and return to pre-pandemic levels by mid-2024.