The Thai economy is expected to continue to thrive in the second half of 2024. According to the latest forecast from KResearch, the research firm of Thai Bank, Thailand's economic growth rate in the second half of the year will be higher than that in the first half, and the expectation of a 2.6% increase in gross domestic product (GDP) for the whole year will be maintained. Behind this prediction is Thailand's flexible response and active adjustment in the global geopolitical and economic environment.

Against the backdrop of increasing global economic uncertainty, Thailand's position as a neutral country has brought it unique opportunities. KResearch pointed out that although global trade protectionism and intensified competition have brought certain risks to the Thai economy, Thailand, with its unique geographical location and economic resilience, is expected to achieve steady growth in multiple fields. Especially, if the US China trade war escalates further, Thailand may benefit from it and become a new destination for manufacturing relocation, attracting more foreign investment and businesses to settle in.

However, the Thai economy also faces many challenges in the second half of the year. The first and foremost threat is the potential threat of flooding, which has caused serious damage to agriculture and infrastructure in some areas. In addition, the severe fluctuations in the Thai baht exchange rate, intensified competition from foreign products, and rising domestic costs, especially the increase in the minimum wage standard, have brought considerable pressure to Thailand's manufacturing and service industries.

To address these challenges and seize opportunities, the Thai government and businesses are taking a series of measures. On the government side, by introducing economic stimulus policies and strengthening infrastructure construction, we aim to enhance national competitiveness and attract foreign investment. At the same time, the government is committed to promoting industrial structure upgrading, strengthening technological innovation and talent cultivation, laying the foundation for long-term economic development.

In terms of enterprises, Thai companies are actively adjusting their business strategies, strengthening risk management, and seeking diversified development paths. They continuously enhance their competitiveness through technological innovation, market expansion, and brand building to adapt to changes in the global market.

It is worth noting that while the Thai economy is thriving, it is also facing some deep-seated problems. If the problem of household debt becomes increasingly severe, it is expected to approach 90% of the gross domestic product in the next few years, which will pose a potential threat to stable economic growth. Therefore, the Thai government and businesses need to work together to take effective measures to alleviate household debt pressure and promote sustainable economic development.