How will the Thai economy tend to be in 2023?

The Economic crisis is the main problem for every country around the world. Recently, inflation still causes the higher price in goods and services. Thus, the Federal Reserve Bank(FED) announced the new interest rate to be higher in order to deal with inflation which caused other central banks to raise their interest as well. Thus, the Thai economy is interesting to study about its tendency in 2023 whether it’s going to be good or bad. You can find an answer here in this article!

Thai Economic Tendency in 2023.

It is estimated that the economic expansion will reach 3.8% in 2023 which is higher than last year when the economic expansion was 3.4%. This estimation of the economy is from many factors that indicate a good future of the Thai economy such as the recovery of consumption, traveling, covid-19 pandemic is less concerned and the less inflation. Travel will be the main force that supports the Thai economy because there will be more travelers who visit Thailand, especially the traveler from Asia, Europe and USA. There might be 21.5 million people who travel to Thailand and it will help the economy to grow at about 3.2% per year. However, there are not only positive factors that will affect the economy but also negative factors.

Positive factors

Business sectors will be turned into BCG economies under the ESG platform and investment in technology.
New business opportunities from people’s behavior in the New Normal era such as online payment or QR scanning instead of paying in cash.
Tourism will recover with the great number of tourists who visit and spend their money in Thailand. The spending tends to help the economy grow.
The rise of domestic demand according to the income of agriculture and a good condition of the economy.

Negative factors

The world’s economy tends to slow down which will affect the export of Thailand.
New K-Shaped economy and the cost pass-throughs put pressure on business profits and high-rate debt in the household.
Inflation in Western countries causes the central bank to issue strict policy which is the main factor for the baht fluctuation.
A geographical conflict which affects the supply chain and raises the goods price continuously.

Even though there is a potential for a bright future of economic growth in 2023, we need to prepare ourselves for the problem that might occur since there are some risks about the recession.

Small businesses should have some money circulation to run business in the bad time or loss of profits.
SME should develop their technology to reduce cost and have more opportunities in online shopping.
Cutting some expenses in order to have more money is an important thing for people with unstable income.