BANGKOK (Reuters) – Thailand’s economy is expected to grow by 2.75% to 3.5% again this year on rising exports, rising tourism and government support, but faces rising inflationary pressures. a major joint venture group said Wednesday.
Exports are expected to grow by 6% to 8% this year, up from previous forecasts of 5% to 7%, according to a group that includes industry, banking and commercial representatives.
Group chairman Payong Srivanić told a news conference that tensions between China and the United States over Taiwan could benefit Thai shipments and attract investments that have moved to the Southeast Asian country.
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The group, a joint standing committee on commerce, industry and banking, expects seven to eight million foreign tourists to arrive this year, compared with nearly 40 million in 2019.
We forecast headline inflation of 5.5% to 7.0% this year, well above the central bank’s target range of 1% to 3%.
Payong, who is also president of the Thai Bankers Association, said the central bank is expected to start raising key interest rates from next week, but commercial banks will be in no rush to raise rates.read more
The group has asked the central bank to gradually raise key interest rates according to economic conditions.
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By Orathai Sriring. Edited by Ed Davies
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