SCB EIC expects CLMV economies to accelerate in 2024, albeit slower than pre-pandemic due to prevailing challenges
CLMV economic growth is projected to accelerate in 2024, driven by recovery in exports and tourism, bolstering domestic demand. Multinational enterprises are seeking to diversify their manufacturing bases in CLMV countries to mitigate geopolitical risks, which will help boost FDI. Economic recovery varies across countries, with challenges such as high public debt in Lao PDR and political unrest in Myanmar. CLMV local currencies may face softer downward pressures in 2024, with anticipated rate cuts in major economies attracting capital inflows. CLMV-Thailand trade and investment are expected to recover, supported by global trade improvement and easing financial conditions. SCB EIC remains positive about the long-term outlook for CLMV economies, attracting both Thai and foreign investors due to a young workforce, free trade agreements, and strategic location.
