Thai Central Bank Expects No Big Stimulus as Economic Recovery on Track

Thailand’s central bank sees no need for a big stimulus as the economy continues to recover with a help from tourism and consumption.

The Bank of Thailand Governor Sethaput Suthiwartnarueput said in a seminar that inflation is falling faster than expected and interest rate decisions will follow the economic outlook, not short-term data.

The governor pointed out that the economy continues to recover amid surges in the tourism sector and consumption. However, weak exports data this year could lead to the central bank revising growth forecast down to mid-3% range, but still keeping the outlook of 3.6% growth for now in which a big stimulus is not required to boost the economy.

Thailand recorded 2.6% growth last year as the kingdom was recovering from the global pandemic that cut its main income revenue, which is its tourism sector, to zero at the peak of the Covid-19 outbreak. The second-largest economy in Southeast Asia posted a better-than-expected economic growth of 2.7% in the first quarter this year.

However, the finance ministry last month trimmed Thailand’s 2023 growth forecast to 3.5% from 3.6% after seeing weak outlook for exports and foreign tourist spending.

Foreign arrivals to Thailand in the first seven months of this year surpassed 15 million, which generated revenue of over a trillion baht.