Thai baht strength a risk to economy: finance minister

THE strengthening of the baht is a risk to Thailand’s economy at the moment as it reduces export volumes, the finance minister said on Friday.

The business sector needs to hedge against foreign exchange risks, Finance minister Arkhom Termpittayapaisith told a ministry event.

The baht has gained about 2.7 per cent against the dollar so far this year, becoming Asia’s second-best performing currency.

While export orders are declining as global demand slows, Arkhom said South-east Asia’s second-largest economy is underpinned by a rebound in the crucial tourism sector, which should see more than 20 million foreign tourist arrivals this year.

“That’s why people see Thailand’s economy is recovering,” he said.

The ministry forecast economic growth at 3.8 per cent this year, up from estimated growth of 3.0 per cent in 2022.

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The government will report official 2022 gross domestic product (GDP) data on Feb 17. REUTERS