Joint business group sticks by GDP outlook despite inflation risk

Joint business group sticks by GDP outlook despite inflation risk

FILE PHOTO: Travellers walk through the arrivals terminal at Suvarnabhumi International Airport in Samut Prakan province on July 1, 2022. (AFP)
FILE PHOTO: Travellers walk through the arrivals terminal at Suvarnabhumi International Airport in Samut Prakan province on July 1, 2022. (AFP)

The Thai economy is still expected to grow 2.75% to 3.5% this year, helped by increased exports, more tourists, and government support, but faces rising inflationary pressures, a leading joint business group said on Wednesday.

Exports are expected to increase 6% to 8% this year, up from a previous forecast rise of 5% to 7%, according to the group, which includes representatives from industry, banking and commerce.

Tensions between China and the United States over Taiwan could benefit Thai shipments and draw relocated investment to the Southeast Asian country, group chairman Payong Srivanich told a news conference.

The group, the Joint Standing Committee on Commerce, Industry and Banking, sees 7 million to 8 million foreign tourist arrivals this year, compared with nearly 40 million in 2019.

It forecast headline inflation of 5.5% to 7.0% this year, above the central bank's target range of 1% to 3%.

While the central bank is expected to start raising its key interest rate next week, commercial banks will not rush to hike their rates, said Mr Payong, who is also chairman of the Thai Bankers' Association.

The group urges the central bank to gradually hike the key rate in accordance with economic conditions. 

Do you like the content of this article?
COMMENT (1)
TRENDING

Thai test for Urawa as Kobe draw Jeonbuk in Asian Champions League

TOKYO: Two-time Asian Champions League winners Urawa Red Diamonds will take on Thailand's BG Pathum United in Monday's quarterfinals at Saitama Stadium with South Korea's Jeonbuk Motors facing J1 League strugglers Vissel Kobe.

11:00

PM defends ad spending of govt

Prime Minister Prayut Chan-o-cha and government officials on Friday came out in defence of the Office of the Prime Minister's spending on advertisements, after it was ranked 13th out of 20 agencies for most ad spending in the country according to a recent poll by US-based research firm Nielsen.

10:50

Japan probing mistreatment of pregnant foreign trainees

The Japanese government is conducting a survey to determine whether foreign technical trainees have been forced by employers or intermediary groups to leave the country because they fell pregnant or gave birth.

08:38