Finance Ministry cuts 2022 GDP outlook over Ukraine war

Finance Ministry cuts 2022 GDP outlook over Ukraine war

A Ukrainian servicewoman walks at a position, as Russia's attack continues in Luhansk Region on Tuesday. The Russia-Ukraine war is a factor affecting Thailand's economic growth this year. (Reuters photo)
A Ukrainian servicewoman walks at a position, as Russia's attack continues in Luhansk Region on Tuesday. The Russia-Ukraine war is a factor affecting Thailand's economic growth this year. (Reuters photo)

The Finance Ministry on Wednesday reduced its 2022 economic growth forecast to 3.5% from a previous forecast of 4.0%, due to the impact of the Russia-Ukraine war on global growth and inflation, a ministry official said.

Southeast Asia's second-largest economy, however, will still be supported by higher domestic spending and a recovery in tourism, as well as exports, Pornchai Theeravet, head of the Fiscal Policy Office, told a news conference.

"The economy is still growing, accelerating from last year's 1.6% growth, but there remain risk factors," he said,

"The ministry is ready to take appropriate fiscal and monetary measures to ensure continued and broad-based economic recovery," he added.

The ministry now expects exports, a key driver of Thai growth, will rise 6.0% this year, up from the 3.6% previously projected, he said.

The tourism-dependent country is on track to receive 6.1 million foreign visitors this year, but below the 7 million projected earlier due partly to the impact of the Ukraine conflict on Russian tourist numbers and China's travel restrictions.

The predicted tourist numbers would be far short of the nearly 40 million visitors during 2019, but a substantial improvement on the 428,000 foreign tourist arrivals in 2021.

From May 1, Thailand will scrap a mandatory pre-departure Covid-19 test for visitors in a bid to revive an industry that generally accounts for about 12% of gross domestic product.

Do you like the content of this article?
COMMENT (5)

Manila prison holds mass burial of 70 unclaimed bodies

MANILA: The unclaimed bodies of 70 inmates at the Philippines’ largest and most congested prison were buried on Friday, several weeks after justice authorities discovered decomposing bodies.

2 Dec 2022

Hot US job market a challenge for Fed

WASHINGTON: US employers added more jobs than forecast in November and wages surged by the most in nearly a year, pointing to enduring inflationary pressures that boost chances of higher interest rates from the Federal Reserve.

2 Dec 2022

Central bankers fear more volatile inflation

The global economy may be headed for a new era of volatile inflation, making it even more crucial to anchor expectations about where prices are headed, top central bank governors meeting in Bangkok warned on Friday.

2 Dec 2022