IMF raises Thai economic forecast but growth falls short of 3%

Bangkok, The International Monetary Fund (IMF) has revised up its forecast for Thailand's economy, but it will still grow less than 3% this year, while the global economy is expected to expand by 3.2% this year. The IMF released its latest World Economic Outlook report yesterday (July 16), stating that the Thai economy in 2024 will expand by 2.9%, up from the 2.7% forecast in April. It also expects the Thai economy in 2025 to expand by 3.1%, up from the previous 2.9% forecast. The global economy is expected to expand by 3.2% in 2024, unchanged from the April forecast. The global economy is expected to expand by 3.3% in 2025. However, it has revised down its forecast for the US economy to 2.6% in 2024 from the previous 2.7% forecast, and its forecast for Japan's economy to 0.7% in 2024 from the previous 0.9% forecast. The IMF said China and India would help boost economic activity this year, with China's economy expected to expand by 5% in 2024, up from its previous estimate of 0.4%, the same figure as the Chinese government's announced target, which it said would come from a recovery in consumer spending and strong exports. It also raised its 2025 GDP forecast from 4.1% to 4.5%. India's economy was also revised up by 0.2% to grow by 7% this year. Europe's GDP forecast was revised up by 0.1% to 0.9%, but the 2025 figure was kept at 1.5%, saying that European economies had already recovered from their lowest point. IMF warns of short-term inflation risks: Renewed geopolitical and trade tensions are leading to rising import costs in supply chains, which will continue to pressure prices to remain high, and political uncertainty linked to economic policies due to elections in many countries could have an impact on other countries around the world. Source: Thai News Agency