YoY Growth rate of construction investment Thailand 2020-2023

In 2023, it was estimated that the year-on-year growth of construction investment in Thailand would decrease by two percent compared to the previous year. This is mainly due to government construction investments that are likely to contract due to political instability.

Thailand’s budget outlook

As of July 2023, the establishment of the new government and the changes in key positions are still pending following the 2023 election results. This could affect the consideration of the annual budget for the year 2024 and may cause the disbursement of government investment expenditures to be postponed or unable to be implemented within this year. As of 2021, the growth rate of public sector construction investment was at 6.4 percent.

Public construction project

Thailand’s total budget for the Eastern Economic Corridor development and public utilities from 2023 to 2027 accounted for around 337.8 billion Thai baht. The construction investment expenditure for rail and public transportation totaled around 45 percent of the budget, followed by road and transport projects. This government expected its initial investment to attract additional private sector investment, including for the construction of residential housing along new mass transit lines and roads, as well as factories and industrial estates in nearby areas.