Despite turmoil in Banking Sector in the first half of the year and uncertainty in the global financial system. The head of the central bank stated on Monday. That Thailand’s economy is still expect to grow at 3.6% this year, powered by tourism and domestic consumption.
According to him. The BOT’s forecasted growth for this year is quite near to the nation’s long-term progress potential of roughly 4%.
However, he added, the BOT forecasts 2.9% growth over the prior year for the economy in the 1st half, with a 7.1% decline in exports.
According to Sethaput. Growth is anticipate to go up in the 2nd half of the year, reaching 4.3% year over year, with an increase in exports of 4.2%.
The second-largest economy in Southeast Asia hasn’t recovered as quickly as some of its neighbours in the area. But a pickup in tourism is anticipated to improve development.
Sethaput stated that the BOT anticipated 28 million international visitor visits this year, down from over 40 million in 2019 prior to the pandemic.
He predicted that headline inflation. Which fell to 2.83% in March, would reach 3.3% in the first half and 2.5 percent in the 2nd half of 2023.
Even while the BOT’s goal range of 1% to 3% was once again met by headline inflation last month. Sethaput warned that inflation risks persisted and needed to be closely watched.
In order to reduce price pressures, the BOT increased its benchmark rates by one-quarter percent to 1.75% last month. On May 31, when it conducts its subsequent rate review, experts anticipate another rate increase.
According to Sethaput. Although baht instability was greater than regional counterparts and was influence by outside forces, its levels were still very low.
According to him. The BOT intends to meet with the bank of China next month and will promote increased usage of the yuan for trade.