Thailand cuts 2023 economic growth outlook

Thailand's finance ministry has cut its 2023 economic growth forecast to 3.6% from 3.8%, citing a decrease in exports amid weakening global demand. Exports, which are a key driver of Thai growth, are now expected to fall by 0.5% this year, compared to the previous forecast of a 0.4% increase. Meanwhile, public consumption is expected to drop by 2.1% due to a delay in Thailand's 2024 fiscal budget as the country gears up for the May 14 election. However, Southeast Asia's second-largest economy is expected to be supported by domestic consumption and tourism. The ministry predicts an average of 29.5 million foreign tourist arrivals this year, up from 27.5 million previously projected, which could help counterbalance the negative impact of falling exports.