By Oratai Sririn and Kitifon Taichareon
BANGKOK (Reuters) – Thailand’s economy is on a solid path to recovery and showing resilience, aided by good revenues and a normalization of the tourism sector, the Thai finance minister said on Monday, while inflation this year has He said he expects it to fall below 3%.
Southeast Asia’s second-largest economy expanded at a faster-than-expected pace in the first quarter of this year on the back of a vital tourism sector.
Alkom Thampittayapaisis told a World Bank forum that the policy mix of fiscal and monetary policies is underpinned by a comprehensive and timely policy mix, and that each policy should continue to be implemented proactively and cautiously. Stated.
Arkom said he expected inflation to be below 3% this year, within the central bank’s 1-3% target range, but was uncertain whether the need for rate hikes would diminish.
“There is still uncertainty around energy prices and the US issue,” he told reporters on the sideline.
The central bank is expected to raise the key rate again by a quarter of a percentage point to 2.0% on Wednesday, before keeping it unchanged until 2024, according to a Reuters poll.
The finance ministry said in a statement on Monday that Thailand was well-positioned to withstand global volatility, while the April economy was supported by strong tourism, rising agricultural output and lower inflation.
Revenue also showed strong signs of recovery in fiscal 2022 and is expected to surpass pre-pandemic levels in fiscal 2023, Arcombe said.
“I am confident that Thailand will definitely make a full recovery and return to a vibrant economy soon,” he added.
The Ministry of Finance expects the economy to grow 3.6% this year, up from 2.6% last year.
The World Bank said in a statement on Monday that Thailand needs to manage its growing spending needs while keeping public debt under control.
Thailand’s public debt has increased in response to the pandemic, but overall fiscal risks remain manageable, the bank said.
(Reported by Orathai Sriring and Kitipong Thaichareon; Edited by Martin Petty and Sonali Paul)