BANGKOK (NNT) – The University of Thai Chamber of Commerce’s (UTCC) Institute of Trade Strategies conducted a survey which found that business owners are optimistic about Thailand’s economic growth prospects this year.
Chinese tourists boost expected
The poll discovered that business operators anticipate the economy will grow by over 3% in 2023, propelled by an anticipated increase in the number of Chinese tourists visiting the country and financial circulation from the upcoming general elections.
The survey was conducted with business operators from various sectors nationwide, 76% of whom run small businesses in services, trades, industries, and agriculture. Participants suggested that their business performance was similar to that of last year, but they anticipate improvements within the next six months, leading to pre-pandemic levels.
The alleviation of disease control restrictions has allowed for an improvement in business and economic activities. The tourism sector is also bouncing back with the return of Chinese tourists, while the general elections are expected to increase cash flow.
General election spending to spur GDP growth
However, respondents suggested that the business sector still needs to navigate inflation, minimum wage hikes, and volatile energy prices, which impact business expenses.
Nevertheless, the individuals surveyed forecasted that the Thai economy would grow by 3.35 to 3.82%, or 3.42% on average, in 2023.
The intensive campaigning during the general elections is also expected to put 100 to 120 billion baht into circulation during April and May, boosting overall GDP growth by 0.5 to 0.7%.