Bank of Thailand Lowers Growth Projection for 2023 to 3.6%

The Bank of Thailand has lowered its growth projection for 2023 due to lower-than-expected GDP growth and inflation.

Key Takeaways

The Bank of Thailand has reduced its growth projection for 2023 due to lower-than-expected GDP and inflation rates.
Private consumption and the tourism sector are expected to drive economic expansion in the second half of the year, but there are concerns about export growth and private investment.
The central bank plans to ease up on monetary policy to support a soft landing for the economy, as the current policy interest rate is close to the neutral level.

The softer growth is attributed to external factors, and the central bank plans to review its economic assessment. The regulator projects economic growth for this year at 3.6%, with inflation within the target range of 1-3%.

Private consumption showed strong growth in the second quarter, supported by rising income and a tourism recovery. However, exports and tourism spending have been lower than projected. The central bank anticipates economic expansion in the second half, driven by private consumption and the tourism sector.