Thai economy growing strongly amid global slowdown: deputy PM

THAILAND’S economic growth is stable and strong, driven by a rebound in the vital tourism sector and with economic indicators improving, a deputy prime minister said on Thursday (Mar 9).

Slowing global demand, however, was affecting the country’s exports, Supattanapong Punmeechaow told a business seminar.

Thailand’s customs-based exports, a key driver of growth, contracted for a fourth straight month in January with a larger-than-expected 4.5 per cent fall from the same period of 2022, as a global slowdown hit demand.

Speaking at the same event, Finance Minister Arkhom Termpittayapaisith said South-east Asia’s second-biggest economy was expecting economic growth of 3 per cent to 4 per cent this year, although expansion of 4 per cent to 5 per cent would be appropriate.

“Our growth path is a continued one. We don’t know when it will peak but we are planning that growth of 4-5 per cent is suitable for Thailand but we need more productivity,” he said.

Arkhom said the country’s fiscal and financial positions were stable but monetary policy must support the expansion of the economy.

“The Bank of Thailand (BOT) will look at several factors, clearly the recovery of the economy that must continue and be sustained,” he said.

The BOT is expected to raise its key interest rate again this month to contain consumer prices.

A key growth area is tourism, which is rebuilding strongly since the removal of all pandemic restrictions, with hopes that the reopening of China — a key source market for Thailand’s tourism sector — will give a big lift.

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Thailand, one of Asia’s top travel destinations, is expecting to see 25 million to 30 million foreign visitors this year, Tourism Minister Pipat Ratchakitprakan told the forum.

The number compares to the record of nearly 40 million in pre-pandemic 2019.

Thailand had 4.2 million foreign visitors in the January-February period of this year, according to a presentation by the ministry. REUTERS