BOT mulls revising GDP and inflation rates
The Bank of Thailand (BOT) is considering lowering its projections for gross domestic product (GDP) and the inflation rate for this year.
The latest economic figures for Thailand released by the National Economic and Social Development Council (NESDC) for the second quarter of this year show a modest expansion of 1.8%, which is lower than the Bank of Thailand's (BoT) expectations. This signals that BoT may have to revise its growth projections downwards.
According to the Bank of Thailand's Governor Sethaput Suthiwartnarueput, the Thai economy in the second quarter of this year grew more slowly than anticipated due to such external factors as lower tourist spending compared to forecasts. Chinese tourists, in particular, visited Thailand in fewer numbers than expected, and exports recovered more slowly than hoped.
However, despite the slower growth, the Thai economy is still on a continuous path of recovery, driven mainly by tourism. It is estimated that the number of tourists this year will reach the target of 29 million people.
Private consumption continues to grow steadily, with an impressive 7.8% growth in the second quarter, despite the economy expanding by only 1.8%. This is the highest consumption growth rate in 20 years, indicating a clear and ongoing boost from private consumption in the near future.
One of the factors contributing to the economic projections falling short of expectations is the export figures. In the first half of the year, exports recovered slowly, and it remains to be seen whether they will recover as anticipated in the remaining months of the year.
The BOT governor said these factors might lead to a possible revision of Thailand's economic growth and inflation estimates at the Monetary Policy Committee (MPC) meeting later this month. Currently, Thai economic growth for this year is estimated at 3.6%, while general inflation is projected to be 2.5%.
