Bank of Thailand Says Economic Recovery Is Likely Intact

Thailand’s central bank’s chief said that economic recovery is likely intact and inflation should ease next year, expecting economic growth to expand 3.3% this year and 3.8% next year, according to the Bank of Thailand Governor Sethaput Suthiwartnarueput speaking at a business seminar on Wednesday.

The central bank forecast headline inflation of 6.3% for this year and 2.6% next year, while the target range for the Thai central bank is 1% to 3%.

To ease inflation and weak Thai baht, the central bank resolved last week to increase the kingdom’s interest rate by a quarter point to 1.00%.

As a key supporter for the economic recovery, Thailand expects to welcome 9.5 million foreign tourist arrivals this year and 21 million next year, though still a ways to go to reach 40 million tourists in pre-pandemic years.