International Business News – Thailand’s central bank said the country’s economy could grow by more than 3% in the second quarter of 2022, based on a recovery in domestic consumption.
According to the Bank of Thailand, economic indicators show that private consumption is driving the economic recovery, with private consumption growing by 2.9% year-on-year in the first quarter of 2022. The governor of the Bank of Thailand said the central bank expects the figure to rise to 9.9 percent in the second quarter.
Non-farm income (excluding government assistance programs) increased to 9.2% in the first quarter from 4.2% in 2021. In the second quarter, the figure is expected to reach 10.3%. In the second quarter of 2022, agricultural income (excluding government aid programs) will increase to 16.7% (6.6% in the first quarter). Exports and production also improved.
There has been an increase in foreign tourists visiting Thailand after it reopened its doors. Although the number of foreign tourists may increase by the end of the year, the central bank predicts that foreign tourists may reach 6 million. The Bank of Thailand also forecasts that the country’s GDP will grow by 3.3% this year.
The governor of the Bank of Thailand also said that the central bank plans to gradually normalize monetary policy to balance economic growth and stabilize prices and the financial system. In the current context of rising inflation, the central bank is prioritizing addressing inflation, and the central bank has committed to maintaining its medium- and long-term inflation target through monetary policy.
The Central Bank of Thailand also forecasts that inflation in Thailand will be at 7.5% in the third quarter of 2022 and then gradually decline. In 2023, the Bank of Thailand forecasts inflation to be 4.1 percent in the first quarter, 2.5% in the second, and fall to 1.7 percent in the third and fourth quarters.