Illustrative photo. (Photo: AFP/VNA)WB East Asia andPacific Chief Economist Aaditya Mattoo said at a virtual press conference onMarch 31 when the bank released its latest East Asia and the Pacific EconomicUpdate report, that the country’s tourist arrivals are projected to increase to27 million in 2023, reaching 68% of the pre-pandemic level, and are expected toaccelerate and surpass the pre-pandemic level by 2024.
Mattoo said though theSoutheast Asian country's inflation remains higher than the target range, theinflation pressures have eased.
He warned aboutdomestic challenges such as rising household debt levels, rapid aging, lowcapital investment accumulation and declining export competitiveness, which maylimit Thailand's potential growth, and advised deepening reforms, especially inthe service sector.
To ensure sustainabledevelopment, Kiatipong Ariyapruchya, the WB's senior economist for Thailand,said besides maintaining fiscal stability and sustainability, Thailand mustfurther open up the service sector, increase investment for climate adaptationand enhance social protection for the aged and poor.
Meanwhile, the bankprojected the Malaysian economy to grow at a more moderate pace of 4.3% in 2023thanks to domestic demand amid an expected slowdown in external demand.
Private consumptiongrowth is forecast to remain robust, albeit at a slower rate at 6.3% in 2023,as compared to 11.3% in 2022, the WB said in the report.
According to thereport, private consumption growth is supported by improvements in labor marketconditions, as well as ongoing income support measures from the government.
Meanwhile, investmentis projected to increase by 4.4% in 2023, as compared to 6.8% in 2022,reflecting the continued flows of investments in the private and publicsectors.
Malaysia's inflation,on the other hand, is forecast to moderate to between 2.5 and 3.0% in 2023, ascompared to 3.3% in 2022, as global supply constraints ease, and commodityprices stabilise./.
VNA
