Thai growth forecasts may need to be revised down

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© Reuters. FILE PHOTO: The Financial institution of Thailand brand is seen in Bangkok, Thailand April 26, 2016. REUTERS/Jorge Silva/File Photograph

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By Orathai Sriring

BANGKOK (Reuters) – Thailand’s financial system continues to get better, helped by tourism and consumption, although the expansion forecast could have to be revised down with exports weak this yr, the central financial institution chief stated on Wednesday.

Inflation was falling sooner than anticipated and rate of interest choices would give attention to the financial outlook, not quick time period information, Financial institution of Thailand (BOT) Governor Sethaput Suthiwartnarueput informed a central financial institution seminar.

Thailand’s financial system, Southeast Asia’s second-largest, expanded 2.6% in 2022. In Could, the BOT maintained its forecast for financial progress at 3.6% this yr, and three.8% for 2024.

“As a consequence of a slowdown, this quantity will most likely have to be adjusted all the way down to the mid-3% vary this yr,” Sethaput stated.

The financial system expanded by a more-than-expected 2.7% within the first quarter from a yr earlier because the very important tourism sector gathered energy.

On July 26, the finance ministry trimmed its 2023 financial progress forecast to three.5% from 3.6%, reducing its projections for exports and international vacationer spending.

“Exports have been gentle as a result of world points,” Sethaput stated, including personal consumption and tourism would assist continued restoration and that the nation expects 29 million international arrivals this yr.

Pre-pandemic 2019 noticed a document of practically 40 million international vacationers who spent 1.91 trillion baht ($54.57 billion).

Thailand acquired 15.32 million international vacationer arrivals from January to July.

The central financial institution final week raised key rate of interest for the seventh straight assembly to 2.25%.

Sethaput on Wednesday stated the subsequent financial coverage assessment could maintain or increase charges.