BANGKOK- Thailand’s economy is seen growing between 3 percent-4 percent this year as it follows a sustained recovery path despite a global slowdown, the central bank said in a statement released on Tuesday.
Inflation, currently above target at 5.02 percent, is expected to return to within a target range of 1 percent-3 percent in the second half of 2023, the Bank of Thailand said, citing a speech by its governor, Sethaput Suthiwartnarueput, on Monday.
BoT would continue its monetary policy normalization in a measured way but would be ready to adjust as appropriate, the statement said. The central bank’s next rate setting meeting is on March 29, when economists expect a further increase in interest rates.
Southeast Asia’s second-largest economy grew 2.6 percent in 2022, less than expected.
But it is now is picking up steam as the crucial tourism sector bounces back, especially with the return of Chinese tourists. Thailand expects 25.5 million foreign tourists this year.
Exports, another key driver of growth, however, were seen rising just 1 percent this year, with a possible contraction ahead, BoT said.
Thailand’s economic growth slowed in the fourth quarter as reduced exports and factory activity, together with tightening monetary conditions, curbed private consumption, a Reuters poll of economists found.
Growth in Southeast Asia’s second-largest economy was forecast at 3.5 percent year-on-year in the October-December period, down from 4.5 percent growth in the prior quarter, according to the median forecast of 19 economists polled Feb. 9-15. — Reuters
