Tourism is still driving growth of Thai economy, central bank says
Tourism remains the engine of growth for the Thai economy and with the number of foreign visitors continuing to rise, economic growth will pick up, according to the Bank of Thailand monetary policy department director Sakkapop Panyanukul.
Consumption will also rise due to the recovery in the labour market, Sakkapop said.
Government spending also increased in both operational and capital expenditures, he added.
Thailand still needs to focus on three challenges: the fluctuating global economy, uncertainty about the formation of the next government and its policies, and the high cost of living, which disproportionately affects vulnerable groups, Sakkapop said.
While core inflation remains unchanged, headline inflation has fallen significantly even though there was a slight rise in food prices, he said.
Thailand targets 25 million foreign tourists this year, deputy government spokesperson Traisuree Taisaranakul said last Sunday. The country passed the mid-way point on June 25 when the number of foreign arrivals surpassed 12.46 million.
