According to a study by the Bank of Thailand (BOT), despite the fact that the Thai economy is experiencing some difficulty as a result of global volatility, it is on the road to recovery. The downturn will hurt Thai exports, but a rise in domestic demand and international tourists will keep the economy afloat.
The Bank of Thailand Governor, Sethaput Suthiwartnarueput, has promised that any future increases in interest rates will be measured and gradual, and that the BOT is prepared to modify its pace if required. Unlike other economies, he said, Thailand’s is still in its early phases of recovery, and dramatic rate rises would be inappropriate given the country’s falling inflation.
BOT hopes that by the second half of 2023, after increasing its benchmark interest rate by 75 basis points since August 2022, inflation would have returned to its target range of 1-3%.
Although there are some potential downsides to the economic projection in 2023, Sethaput said there is a good probability that domestic growth will still be above 3%. But he warned that unmanageable levels of personal debt in the economy must be addressed.
The BOT now expects growth of 3.7% in the GDP in 2023.