Thailand’s Ministry of Finance confirmed that the Thai economy is on the road to recovery and showing resilience.
Southeast Asia’s second-largest economy grew faster than expected in the first quarter of this year, thanks to a recovery in its vital tourism sector.
Speaking at the World Bank Forum, Finance Minister Arkhom Termpittayapaisith said the economic recovery has been supported by a comprehensive and timely set of fiscal and monetary policies, which should continue to be implemented proactively and cautiously.
While he forecasts inflation below 3% this year, within the Bank of Thailand’s (BoT) target range of 1% to 3%, Arkhom said he could not say whether there would be less need to raise interest rates.
He told journalists on the sidelines of the forum:
“There is still uncertainty around energy prices and US issues. »
The BoT is expected to raise its key rate by another quarter to 2.0% on Wednesday (May 31) and then hold it until 2024, according to a Reuters poll.
In a statement on Monday (May 29), the ministry said the economy was supported in April by stronger tourism, higher agricultural output and falling inflation, while Thailand is well positioned for weather fluctuations.
The minister said revenue collection also shows strong signs of recovery in FY22 and is expected to surpass pre-pandemic levels in FY23.
The World Bank said in a statement on Monday that Thailand is now facing growing spending needs while keeping public debt under control.
She added that Thailand’s public debt has increased as a result of the response to the pandemic, but overall fiscal risks remain manageable.
See: Thailand must raise taxes and levies to boost spending
source: Chiang Rai Times
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