Perspectives
Economic slowdown, gripping world markets
Signs of resilience in the face of still-high borrowing costs
Executive Summary
The global economy is currently navigating a delicate balance. While some regions have shown resilience, persistent challenges such as inflation, geopolitical tensions, and supply chain disruptions continue to cast shadows. Central banks are grappling with the task of managing interest rates to curb inflation without stifling growth. Meanwhile, the lingering effects of the pandemic and climate change add further complexity to the economic landscape.
The International Monetary Fund's (IMF) World Economic Outlook Report projected the global growth of 3.2% for 2024 and slightly increase to 3.3% in 2025.
While economic activity has picked up in some regions, particularly in Asia and Europe, persistent inflation is complicating efforts to normalize interest rates. To maintain growth and stability, policymakers must carefully balance efforts to control inflation while supporting economic expansion.
Meanwhile, the global inflation is more slowing, but unevenly. Services prices remain stubbornly high, while goods prices are falling faster.
Thailand's 2024 economic growth is projected at 2.3-2.8%, according to the Thailand Office of the National Economic and Social Development Council, driven primarily by continued expansion of domestic consumption and the tourism sector's rebound. However, high household debt would remain be the headwind of the domestic demand. Thailand’s 2024 inflation is also forecasted to be in the target range by the end of this year.
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