BANGKOK (NNT) – Siam Commercial Bank’s Economic Intelligence Center has readjusted up its projection for Thailand’s GDP growth at 3% this year and 3.7% next year, thanks to the recovery of tourism and private consumption.

Mr. Somprawin Manprasert, SCB’s First Executive Vice President, Chief Economist, and Chief Strategy Officer of the Economic Intelligence Center said the adjustment was made to reflect the revenue from the tourism and related sectors, and continuous growth in private consumption.

10.3 million international visitors in 2022

According to the EIC, Thailand is expected to welcome 10.3 million international visitors this year, and 28.3 million international visitors next year.

The EIC expects however for the Thai economy to take another 2 years to recover at full speed, and for the country’s Monetary Policy Committee to further raise the policy rate at increments of 0.25%.

Policy rate to reach 2% in 2023

The Monetary Policy Committee is expected to make these changes in September and November, making the policy rate reached 1.25% towards the end of this year. The committee is expected to readjust the policy rate three times next year until the rate reaches 2%.

Thailand’s economy continues to face challenges from the global economic slowdown, particularly in the United States and European Union which suppresses the country’s exports and investments.

Economic slowdown in China

The zero-Covid policy and property crisis, together with the high inflation rate affecting the purchasing power of households and businesses, have contributed to higher than the expected economic slowdown in China. Uncertainties in Thailand’s politics may affect the confidence in the manufacturing and investment sectors, making it necessary for the government to continue providing help to the vulnerable population.

Information and Source

  • Reporter : Tanakorn Sangiam
  • Rewriter : Tarin Angskul
  • National News Bureau :

About the author

Thailand Business News covers the latest economic, market, investment, real-estate and financial news from Thailand and Asean. It also features topics such as tourism, stocks, banking, aviation, property, and more.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

You May Also Like

Asia Likely to See Dynamic Economic Growth says IMF

Region would contribute more than 70 percent to global growth this year—but still faces challenges from inflation, debt, and financial vulnerabilities

Thai exports may shrink by 1.2 percent in 2023 says KBank

Thailand’s export sector in early 2023 remained under pressure from a slowing global economy, and may shrink by 1.2 percent, from a previous contraction of 0.5 percent forecast in January 2023.

Thailand’s headline inflation lowest in 16 months

The main factors behind the decline in inflation were lower energy and food prices, as well as a high base effect from 2022