Thailand on track for economic revival to pre-Covid level by 2023, says BOT

Government spokesman Anucha Burapachaisri said on Monday that this forecast was included in the Bank of Thailand (BOT)’s latest economic report.

In the report, BOT forecast economic growth of 3.3 per cent this year and 3.8 per cent next year, with tourism and private sector spending being the main driving forces.

The central bank said with tourism picking up, the recovery is extending to other sectors as well.

Meanwhile, BOT believes that though the global economy is slowing down faster than expected, this slowdown should only affect the export sector, not the economy’s general recovery.

The central bank also pointed out that the Thai financial system was stable and commercial banks had healthy levels of reserves. In addition, it said, the private sector and households were also improving their ability to repay debts.

However, despite these positive factors, the central bank recommended that the government implement the following three measures to ensure sustainable growth.

Firstly, it said, the government should find a way to lower household debts. Secondly, the financial sector should support “green” companies to ensure sustainable growth, and thirdly, speed up the development of the digital payment infrastructure.

Anucha explained that the bank’s Monetary Policy Committee had increased the key policy rate by a quarter point to 1 per cent on September 28 to keep inflation in check and ensure the country can continue enjoying economic growth.

He also said Prime Minister Prayut Chan-o-cha has instructed all relevant agencies to come up with monetary measures that help all vulnerable groups, such as providing soft loans and restructuring debt.

The premier is also upbeat about the country’s recovery, especially after the International Monetary Fund predicted that Thailand’s GDP would expand by 2.8 per cent this year. The IMF has also indicated a 4 per cent surge next year thanks to a recovery in export and tourism.