- Inflation to fall to target range of 1%-3% this year – minister
- Minister says baht at 34-35 per dollar is helpful
- Says aggressive rate hikes would weigh on businesses and households
BANGKOK, Feb 25 (Reuters) – Thailand’s economy is expected to grow 3.8% this year, helped by a rebound in the vital tourism sector, while inflation should cool to its target range, the finance minister said on Saturday.
Domestic spending has increased and the government will accelerate investment in major projects to spur growth, Arkhom Termpittayapaisith told a broadcast by Radio Thailand.
As the global slowdown hurts exports, “tourism is our hope,” he said.
Southeast Asia’s second-largest economy grew a weaker-than-expected 2.6% last year, lagging others in the region as the tourism sector was just beginning to recover.
The Ministry of Finance has forecast 27.5 million foreign tourist arrivals this year after Thailand topped its forecast with 11.15 million visitors in 2022. In 2019 before the pandemic, there were nearly 40 million foreign tourists.
Arkhom told Reuters this month that economic growth could beat forecasts as Chinese tourists return.
last update
Watch 2 more stories
He said on Saturday that aggressive rate hikes would increase the cost of doing business and household debt, as the central bank said rate hikes would further dampen consumer prices.
Headline inflation should return to the central bank’s 1% to 3% target range this year, helped by government measures and lower food prices, Arkhom said. Inflation hit a 24-year high last year at 6.08%.
A baht exchange rate of 34-35 baht per dollar is helpful for export prices despite falling export volumes, he added. The Thai currency closed at 34.8 per dollar on Friday.
Reporting by Orathai Sriring, Kitiphong Thaichareon and Satawasin Staporncharnchai; Adaptation by William Mallard
Our standards: The Thomson Reuters Trust Principles.
Comments are closed.