World Bank2024-05-162024-05-162024-05-16https://hdl.handle.net/10986/41552The economy slowed more than expected due to sluggish external demand and delayed budget approval. Expanding private consumption and tourism continued to drive services growth, albeit at a slower pace. Inflation increased due to the removal of energy subsidies and elevated food prices but remained the lowest among emerging markets. The delayed budget approval led to minimal public spending in Q1. However, the recent enactment of the FY24 budget and the upcoming rollout of the Digital Wallet cash transfer in Q4 buoyed the near-term growth outlook. Despite a current account surplus, the Thai baht depreciated in April due to a delay to the Fed’s easing cycle and concerns over the Thai economy and the fiscal implications of the Digital Wallet.en-USCC BY-NC 3.0 IGOECONOMIC GROWTH DIAGNOSTICSECONOMIC GROWTHFISCAL CONSOLIDATIONECONOMIC GROWTH POLICYDIGITAL FINANCEDECENT WORK AND ECONOMIC GROWTHSDG 8BriefWorld Bank10.1596/41552