BANGKOK- Thailand’s economic growth is expected to accelerate in the third quarter after a weaker-than-expected second quarter as public investment spending increases along with a recovery in tourism, the finance minister said.
Public investment had slowed in the second quarter because of pandemic restrictions but projects have resumed since July as the curbs were lifted, ArkhomTermpittayapaisith told reporters at the sidelines of a business seminar.
Despite missing analysts’ forecasts, annual growth of 2.5 percent in April-June is still considered “OK”, given last year’s high comparative base, Arkhom told the seminar.
For 2022, economic growth of 3.0 percent to 3.5 percent predicted by state agencies is considered a clear recovery, Arkhom said, predicting foreign tourist arrivals of 8 million to 10 million this year.
That compares with nearly 40 million foreign tourists in 2019, before the pandemic.
Southeast Asia’s second-largest economy is expected to grow 4 percent to 5 percent next year as the vital tourism sector picks up pace further, Arkhom said, even as the country battles spiraling inflation that could crimp domestic demand.
Last week, the central bank raised its key interest rate for the first time in nearly four years and signaled further gradual hikes to try and curb inflationary pressures. – Reuters
