2023 December

The cabinet has approved a draft fiscal 2024 budget and a mid-term financial plan, with an estimated annual GDP growth of 5.3%. The World Bank and ADB have revised Thailand’s economic growth forecasts for 2023, downgrading it from 3.4% to 2.5% due to export contraction, reduced government spending, and lower investment. Thai workers’ daily minimum wage is set to increase from 2 to 16 baht starting Jan 1, 2024, with varying rates across provinces, representing an average increase of 2.4%. Thailand’s Industry Sentiment Index (TISI) increased to 90.9 points in November, largely due to tourism recovery and state measures to alleviate financial burdens.

Thailand’s headline inflation rate fell to 0.25% in November, largely due to lower energy and food prices. The Thai Bankers Association has maintained steady prime interest rates, while consumer confidence rose to 60.9 from 60.2 in October. However, home buyer confidence in the index for 2023 fell due to a weakened financial status among locals. The latest registration data for informal debt shows a total debt of 3.31 billion Baht, with 68,651 debtors signing up for the visa exemption scheme.

Thailand’s Digital Competitiveness ranking for 2023 surged by five places, landing the country at 35 among 64 economic territories, indicating progress in this domain. Despite economic challenges, Thailand’s exports showed resilience, with October 2023 witnessing exports amounting to US$23.58 billion (828.22 billion Baht), marking an 8% increase.