BOT Keeps 2022 Growth Forecast at 3.3%, Cuts 2023 Projection to 3.8%

The Bank of Thailand has kept its 2022 GDP growth forecast for Thailand at 3.3%, but lowered its forecast for 2023 to 3.8% from 4.2%.

The central bank on Wednesday raised the policy rate by 25 basis points, hiking its benchmark to 1% in a battle to tame inflation and protect the Thai baht from sliding against the US dollar. The second-straight 25bps raise was in line with expectations.

Thailand’s economy is continuing to recover from the Covid-19 outbreak, with tourism and private consumption driving the rebound.

Given the risk of recession in many major economies, Thailand’s economic recovery will feel some effects but have no direct effect on the country’s economic recovery as a whole.

BOT also revised up inflation from 6.2% to 6.3% this year, and from 2.5% to 2.6% in 2023 amid rising prices.