BANGKOK, Feb. 14 (Xinhua) -- Thailand's economy is projected to expand 2.9 percent this year, down from the 3 percent forecast in October 2024, bolstered by higher domestic demand and fiscal stimulus, the World Bank said on Friday.

The Southeast Asian country's economic growth will be driven by a rebound in investment, supported by higher budget execution and implementation of infrastructure projects, while tourism and private consumption will remain key but slowing drivers, the bank said in a report.

According to the bank's Thailand Economic Monitor, tourism is expected to return to pre-pandemic levels by mid-2025, with tourist arrivals this year forecast to reach 41 million, up from 35.3 million last year and surpassing the record high of nearly 40 million in 2019.

Private consumption will be boosted by fiscal stimulus, particularly the government's cash handout measures, but it will be hampered by the deleveraging cycle and banks' stricter lending standards, the report said.

Merchandise exports are expected to moderate due to weaker demand from key trading partners, despite benefits from the global electronics upcycle, the Washington-based bank noted. Enditem

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