Thailand’s overall recovery intact, but some weak spots: central bank chief
THAILAND’S economic recovery is intact but tourism spending and exports – key drivers of growth – were weaker than expected, according to its central bank governor.
“The picture is not all roses ... exports have been slower and tourism spending has been softer,” Bank of Thailand (BOT) chief Sethaput Suthiwartnarueput said in remarks recorded on Aug 17.
Thailand expects 29 million foreign visitors this year, he said in the speech, which was played on Wednesday at a business seminar.
The central bank has raised its key rate seven times to 2.25 per cent since last August to tame inflation and help foster a smooth economic recovery.
“Inflation is coming back into target range,” Sethaput said adding that there was a risk due to the El Nino weather pattern, which would have an upwards impact on food prices.
“The overall recovery remains intact, there is some softness in growth and inflation front,” he said.
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The final economic growth figure for the year would come below the BOT’s 3.6 per cent forecast and a revised figure would be published in September.
This month, he said that the current level of the key rate was nearly balanced and could be held steady or hiked at the next meeting on Sept 27.
South-east Asia’s second-largest economy has been hobbled by slackening global growth, led by its main trading partner China and falling investor confidence due to a protracted period without a government following elections in May.
A new government is expected to be formed soon after Srettha Thavisin’s royal endorsement as prime minister was confirmed on Wednesday, following his victory in a parliamentary vote a day earlier.
“Our policy objective is to get the landing right,” Sethaput said, adding the BOT would pay more attention to medium-term considerations, including growth in the 3 per cent to 4 per cent range and inflation in a target range of 1 per cent to 3 per cent. REUTERS
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