Thai Finance Minister Sees Economy to Recover Steadily in 2023, with Tourism Driving Growth

Thailand’s finance minister said on Wednesday that the country’s economy is slowly but steadily rebounding this year, aided by a comeback in the vital tourism sector, which would continue to be a significant engine of growth.

Arkhom Termpittayapaisith stated at an economic event that increased spending in the current fiscal year and the next would also stimulate investment. He noted that a stronger baht would lower import costs but would also lower export volumes.

Additionally, he emphasized that accommodating policy that did not incur financial costs was necessary to guarantee the country’s economic stability, which required cooperation between monetary policy and fiscal policy.

Thailand’s economy may grow faster than expected this year, Arkhom told Reuters on Monday, thanks to a recovery in tourism and the “reasonable” pace of monetary tightening to contain inflationary pressures.

Since August, the Bank of Thailand has increased the key rate by 100 basis points, bringing it up to 1.50%; nonetheless, the tightening cycle has been less aggressive than many of its regional peers.