Thai business group maintains GDP outlook despite inflation risk

  • GDP growth forecast for 2022 maintained at 2.75%-3.5%
  • sees 2022 exports up 6% to 8%; foreign tourists at 7-8 million
  • Expects to hike rates next week

BANGKOK, Aug 3 (Reuters) – Thailand’s economy is expected to grow another 2.75% to 3.5% this year, helped by rising exports, rising tourist numbers and government support, but faces growing inflationary pressures, a leading joint business group said on Wednesday.

Exports are expected to rise by 6% to 8% this year, against a previous forecast of a 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 shipping and attract offshore investment to the Southeast Asian country, group chairman Payong Srivanich told a news conference. .

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

It projects 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 rate next week, commercial banks will not rush to raise rates, said Payong, who is also chairman of the Thai Bankers Association. Read more

The group urges the central bank to gradually raise the policy rate depending on economic conditions.

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Written by Orathai Sriring; Editing by Ed Davies

Our standards: The Thomson Reuters Trust Principles.

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