Although domestic consumption and tourism industry both climbed in Dec, the central bank reported on Tuesday that exports suffered due to the weakening economy of Thailand’s trading partners.
The Bank of Thailand stated in a statement that economic development was likely to grow slowly as the crucial tourism sector gained pace and that it would continue to track the global economy, living costs, and China’s reopening.
According to Bank Of Thailand Governor Assistant Chayawadee Chai-Anant, who spoke at a news conference. Tourism has done much better than initially expected since China re-opened earlier than predicted.
The Bank Of Thailand increased its predictions for international tourist visits this past week from 22 million – 25.5 million for this year & 34 million the following year. In 2019 prior to the epidemic, there were around 40 million tourists.
The government expects at least 5 million China’s travelers this year as a result of China’s re-opening.
With 11.15 million international tourists Visits in 2022. Thailand exceeded its tourism goal, up from fewer than 500,000 in the year before.
The baht has gained roughly 5.4% it against the dollar thus far this year, making it Asia’s top – performing currency. The tourism recovery has contributed to this rise.
Stronger economic fundamentals have also contributed to the baht’s rise. Which had little effect on exports and regular capital flows, according to Thailand Governor Chayawadee.
To avoid having an overwhelming effect on the economy. The Bank Of Thailand would only intervene if the currency became too volatile, she said.
Exports, a crucial driver of Thailand GDP, fell 12.9% year on year in Dec, with imports falling 10.5% and then a trade surplus of $1.0 billion.
Thailand’s trade surplus in December was $1.1 billion, up from a loss of $0.4 billion recorded in November.
The second-largest economy in Southeast Asia continued to grow over the past three months largely owing to tourism. Although exports declined, as reported by the Bank Of Thailand.