The finance minister announced on Saturday that Thailand’s economy is likely to expand by 3.8% this year, aided by a comeback in the key tourist sector, while inflation should return to the target range.
Arkhom Termpittayapaisith, speaking on Radio Thailand, said that domestic spending has increased and the government will expedite investment in significant projects in order to boost GDP.
When the global recession negatively impacts exports, “tourism is our hope,” he said.
Last year, the second-largest economy in Southeast Asia grew by a slower-than-anticipated 2.6%, lagging behind others in the area as its tourism sector was just beginning to recover.
This year, the Ministry of Finance anticipates 27,5 million international tourist arrivals, after Thailand exceeded its projection in 2022 with 11,15 million visitors. Prior to the 2019 pandemic, almost 40 million foreign tourists visited the country.
Arkhom predicted that headline inflation will return to the central bank’s goal range of 1% to 3% this year, aided by government measures and declining food costs. Last year, inflation reached a 24-year high of 6.08%.
Although dropping export volumes, a baht exchange rate of 34 to 35 per dollar is advantageous for export prices, he continued. On Friday, the Thai currency closed at 34.8 per dollar.