The Bank of Thailand Governor Sethaput Suthiwartnarueput said on Tuesday that the economic recovery in the kingdom is intact and maintained foreign tourists forecast at 29 million by year’s end. However, the governor noted that spending from tourists might be lower than expected.
The governor warned that this year’s economic growth and inflation were expected to be lower than previously forecast, while the current policy rates are close to neutral level and the Southeast Asian country’s economic recovery remains intact. Moreover, inflation would gradually return to within target range.
Thailand’s debt-to-GDP ratio is expected at 61% this year, which is still at a manageable level as well as bad loans in the banking system.
As inflation pressure subsides, the monetary policy will now focus on a longer term outlook.
In addition, the governor noted that monetary policy space is sufficient to handle any external shocks and that Thailand has a strong external position, which can withstand external risks.
