Economy may grow 4% on tourism - minister

Thailand's economy could grow as much as 4% this year, which would be the fastest rate in five years, bolstered by a rebound in the tourism sector and increased domestic consumption, Deputy Prime Minister and Energy Minister Supattanapong Punmeechaow said on Wednesday.

Anticipated new investment will also help, Mr Supattanapong, who is in charge of economic affairs, told a seminar.

"The economy will definitely be better than last year... despite some impact from energy prices," he said.

"Today the economic situation is in recovery and will soon return to normal," he said, adding foreign tourist arrivals were expected at more than 20 million this year.

Thailand's economic recovery has lagged that of other Southeast Asian nations, with the crucial tourism sector just starting to rebound last year with 11.15 million foreign tourist arrivals.

Deputy Prime Minister and Energy Minister Supattanapong Punmeechaow raises key points about Thailand's economic prospects at the "Bangkok Post 2022 Forum : Accelerating Thailand" on Oct 27, 2022. (File photo: Chanat Katanyu)

Last week, the Finance Ministry maintained its 2023 economic growth forecast at 3.8% but cut its 2022 growth estimate to 3.0% from 3.4% as exports weakened.

The government will report official 2022 gross domestic product data on Feb 17.

- Joint business group maintains growth forecast -

The Joint Standing Committee on Commerce, Industry and Banking (JSCCIB) said on Wednesday that the Thai economy is still expected to grow 3.0% to 3.5% this year, unchanged from a previous forecast, as tourism picks up but exports slow.

A strong baht and a global slowdown continue to pressure exports, said the group, which has representatives drawn from industry, banking and commerce. 

The JSCCIB estimated 2022 economic growth at 3.2%.