The Center for Economic Intelligence of the Siam Commercial Bank has adjusted its GDP growth forecast for Thailand to 3% this year and 3.7% next, thanks to the recovery of tourism and private consumption.
Somprawin Manprasert, Executive First Vice President, Chief Economist and Director of Strategy at the SCB Center for Economic Intelligence, said the adjustment was made to reflect revenue from tourism and related sectors, and continued growth in private consumption.
According to the EIC, Thailand is expected to receive 10.3 million international visitors this year, and 28.3 million next year.
Thailand’s industries adapt to energy crisis
However, the EIC expects that it will take another two years for the Thai economy to recover at full speed, and that the country will continue to raise the official interest rate in increments of 0.25%.
The Monetary Policy Committee is expected to make these changes in September and November, bringing the official interest rate to 1.25% by the end of this year. The committee is expected to readjust the policy interest rate three times next year until the rate reaches 2%.
According to the EIC, Thailand is expected to receive 10.3 million international visitors this year, and 28.3 million next year.
The Thai economy continues to face challenges posed by the global economic slowdown, especially in the United States and the European Union, which is holding back the country’s exports and investment.
The policy of zero zeal and the real estate crisis, together with the high rate of inflation that affects the purchasing power of households and companies, have contributed to a greater than expected economic slowdown in China. Uncertainty in Thai politics may affect confidence in the manufacturing and investment sectors, making it necessary for the government to continue providing aid to the vulnerable population.
Add Comment