Thai financial system seen rising 3.5%-4.5% subsequent yr, restoration fragile – FinMin

  • Financial system to develop 1.0%-1.2% this yr – Finance minister
  • Says financial coverage should help fiscal coverage
  • Says fiscal coverage stays robust
  • Commerce Minister sees inflation at 0.7%-1.2% subsequent yr

BANGKOK, Nov 20 (Reuters) – Thailand’s financial system is predicted to develop between 3.5% to 4.5% subsequent yr because of elevated exports and a restoration within the nation’s very important tourism sector from the pandemic-driven hunch, its finance minister mentioned on Saturday.

The Southeast Asian nation earlier this month reopened to vaccinated international guests with out quarantine necessities in a bid to reboot an trade which usually accounts for about 12% of gross home product (GDP).

This yr’s progress is predicted at 1.0% to 1.2% and financial coverage should help fiscal coverage in serving to the financial restoration which stays very fragile, Finance Minister Arkhom Termpittayapaisith instructed a enterprise seminar. The financial system contracted 6.1% final yr.

“Throughout the disaster, fiscal coverage has to play a key function and financial coverage should assist it to have the ability to spend… In the present day, each insurance policies are nonetheless going collectively,” he mentioned.

The federal government’s most important spending is on medical and financial reduction and stimulus measures, Arkhom mentioned, including the fiscal place was robust, with the general public debt-to-GDP ratio anticipated at 62% on the finish the fiscal yr to September.

The central financial institution has left its key rate of interest at a file low of 0.50% since Might 2020 to assist the financial system.

Regardless of excessive oil costs, Thailand’s inflation was solely about 1% within the first 10 months of the yr, held down by state subsidies. In 2022, inflation is predicted to be 0.7% to 1.2%, Commerce Minister Jurin Lasanawisit instructed the seminar.

He additionally mentioned exports might rise by 15%-16% this yr.

Arkhom mentioned international vacationers began to return after the reopening. The state planning company predicted 200,000 international vacationers this yr, and forecast 5 million guests subsequent yr. That in contrast with 40 million international vacationers in 2019.

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Reporting by Orathai Sriring and Kitiphong Thaichareon
Enhancing by Michael Perry

Our Requirements: The Thomson Reuters Belief Rules.

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