Thai finance minister says fiscal, monetary policy to underpin recovery

[BANGKOK] Thailand's fiscal position remains stable, and its monetary and fiscal policies are calibrated to support recovery in South-east Asia's second-largest economy amid various challenges, the finance minister said on Thursday (Mar 24).

This year's growth will be driven by government spending, and exports, which are expected to rise by 5-10 per cent this year, Arkhom Termpittayapaisith told a news conference.

The fiscal position remains stable with sufficient funds to aid the economy, while liquidity in the banking system is ample at as much as 3 trillion baht (S$121.2 million), he said.

The government would closely monitor the Russia-Ukraine conflict and sanctions which would make goods prices and inflation higher, Deputy Prime Minister Supattanapong Punmeechaow said.

It expected the situation in Ukraine to be clear within 3 months, however, and has approved measures for that same duration to help ease the impact of rising energy prices driven by the war.

The measures approved on Tuesday are estimated at 80 billion baht and will help at least 40 million people, officials said.

"We will wait and see for another three months ... if the situation lasts for longer and makes trade imbalanced, it will further increase the prices of some products and inflation," he said.

While the economy may miss forecasts slightly, it should grow no less than 3 per cent this year, said Danucha Pichayanan, head of the National Economic and Social Development Council, the state planning agency. REUTERS