Economy seen growing 3.6% this year - Bank of Thailand

Economy seen growing 3.6% this year - Bank of Thailand

A customer buys chicken eggs at Sri Khema market in Bang Sue district, Bangkok, on Wednesday. Chicken egg prices have increased by 10 satang to 3.60 baht per egg on Wednesday. (Photo: Pornprom Satrabhaya)
A customer buys chicken eggs at Sri Khema market in Bang Sue district, Bangkok, on Wednesday. Chicken egg prices have increased by 10 satang to 3.60 baht per egg on Wednesday. (Photo: Pornprom Satrabhaya)

The Thai economy is expected to grow 3.6% this year and 4.0% next year, helped by a recovery in tourism despite inflationary pressures, a member of the Bank of Thailand's (BoT) Monetary Policy Committee said on Wednesday.

The forecasts compare with the central bank's official projections in June for growth of 3.3% this year and 4.2% next year.

The BoT earlier said growth this year could beat its forecast due to better-than-expected tourism. It is due to review its forecasts at the next rate meeting on Sept 28.

Despite headline inflation hovering around 14-year highs of 7.61% in July, far above the central bank's target range of 1% to 3%, Kanit Sangsubhan said it was not that high and would fall back next year as oil prices drop.

He expected headline inflation at 6.3% this year and 2.6% next year, compared with the 6.2% and 2.5% forecast by the central bank in June, respectively. "Don't panic. Inflation in Thailand is not high compared with other countries," he told a business seminar.

Last week, the BoT raised its key interest rate for the first time in nearly four years, by 25 basis points to 0.75%, to curb inflation and signalled further gradual hikes.


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