Finance Ministry trims GDP growth outlook to 3.4%

Finance Ministry trims GDP growth outlook to 3.4%

The Finance Ministry on Friday trimmed its 2022 economic growth outlook to 3.4% from 3.5% projected earlier, with the main drivers being a recovery in private consumption and the crucial tourism sector, Fiscal Policy Office (FPO) director-general Pornchai Thiraveja said.

The ministry predicts higher economic growth of 3.8% next year, Mr Pornchai said. The tourism-reliant country is expected to receive 10.3 million foreign arrivals this year, up from the 8 million projected three months ago, he said, adding a weak baht was helping the tourism sector.

The FPO chief said toreign tourist numbers are projected at 21.5 million in 2023. There were nearly 40 million foreign tourists in 2019 before the Covid-19 pandemic, and their spending was estimated at 1.91 trillion baht (US$50.64 billion). 

The ministry now expects exports, another key driver of Thai growth, will rise 8.1% this year, up from the 7.7% increase previously forecast, and shipments should rise 2.5% next year.

Headline inflation slowed in September at 6.41%. However, it remained well above the central bank's target range of 1-3%.

The ministry projects headline inflation of 6.2% this year, down from a previous forecast of 6.5%, and sees inflation of 2.9% next year.


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