Thai economy gradually moving in the right direction, says BOT
The Thai economy grew by 0.9 per cent as expected in December, though fears over the Omicron variant may slow things down in the first quarter of 2022, the Bank of Thailand (BOT) said.
Chayawadee Chai-Anant, senior director of BOT’s Corporate Communications Department, said that despite positive trends, people should closely monitor the Covid-19 situation as it may continue disrupting the supply chain and keep fuel prices high.
However, the central bank reckons the economy will improve if Thailand continues opening up to foreign tourists.
Meanwhile, BOT has reduced GDP growth estimation from 3.9 per cent to 3.4 per cent, because of a drop in people’s purchasing power. Also, businesses are worried about stricter prevention measures being introduced in the future.
As for the country’s monetary policy, the BOT said Thailand is different because its economy has not been able to bounce back like that of other industrialised nations. Hence, the Monetary Policy Committee will focus on economic stability before increasing the interest rate.
Chayawadee said it was important for the government to issue new stimulus schemes, adding that overall consumer confidence and improving household incomes have helped bolster the economy.
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Also, she said, a rise in Business Sentiment Index has resulted in the private sector investing more in machines, equipment and infrastructure.
Chayawadee said food prices rose temporarily due to floods, while energy prices remain high due to a spike in world oil prices.
She added that the labour market has recovered based on improved economic activities.
