Tuesday, March 5, 2024

Bank of Thailand lowers 2023 GDP forecast from 3.6% to 2.8%

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The Monetary Policy Committee in Thailand has voted to raise the policy rate by 0.25 percentage points, bringing it to 2.50 percent. They have projected a growth rate of 2.8% and 4.4% for the coming years, driven by private consumption. However, this year’s growth has been subdued due to delayed recovery in exports and tourism, as well as slow growth in China and the global electronic cycle. Nonetheless, the growth rate is expected to pick up in 2024, supported by domestic demand, a recovery in tourism, and improved exports.

Inflation is expected to stay within the target range, with rates of 1.6% and 2.6% predicted for 2023 and 2024 respectively. Government subsidies and a high base from the previous year will keep inflation low for the remainder of 2023. However, core inflation is estimated to increase from 1.4% in 2023 to 2% in 2024. The Committee will closely monitor the impact of government economic policies on growth and inflation. While the overall financial system remains resilient, there is a need to monitor credit quality for certain small and medium enterprises (SMEs) and households.

Source link : Bank of Thailand lowers 2023 GDP forecast from 3.6% to 2.8%

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