Thai finance minister says 2021 exports expected to grow 17%, most in 12 years

Bangkok

THAI exports are expected to grow 17 per cent this year, the highest growth rate in 12 years, the country's finance minister Arkhom Termpittayapaisith said on Monday (Nov 29).

He also told an online forum that gross domestic product next year should grow around 4 per cent or in a range of 3.5-4.5 per cent.

Thailand's economy shrank by 0.3 per cent in the third quarter, as Covid-19 restrictions hit tourism and domestic activity, though the drop was less than expected.

About 1 trillion baht (S$40.6 billion) of government infrastructure would help South-east Asia's second-largest economy achieve growth of 4 per cent next year, he said.

The Bank of Thailand (BOT) intended to keep interest rates low for next year, central bank senior director Don Nakornthab said at the forum.

"This will keep financial conditions at levels that are not too tight," he said.

The BOT, which sees economic growth of 0.7 per cent this year and 3.9 per cent next year, has left its benchmark interest rate at a record low of 0.50 per cent since May, 2020.

The major risks for next year included the new Omicron coronavirus variant, which could hit the tourism sector, Danucha Pichayanan, the head of the state planning agency, told a separate economic forum.

Thailand's tourism sector had started seeing a gradual recovery after the country reopened for vaccinated travellers. The agency expects 5 million foreign travellers next year, compared with 40 million in 2019.

Other risks include those stemming from households that are still fragile especially in terms of credit card debt, said Danucha. REUTERS