The Ministry of Finance will adjust Thailand’s economic growth forecast for 2022 to focus on rising inflation and energy prices, starting next month. According to an unnamed Bangkok Post source, the ministry is concerned about the impact Russia’s invasion of Ukraine will have on overseas arrivals this year.
Earlier this year, the ministry had forecast the economy to grow between 3.5 and 4.5 percent this year, projecting an average growth of 4 percent. The ministry based its calculations on the expectation of increased domestic spending as the Covid-19 situation improves globally. The ministry also forecast that private consumption would increase by 4.5% this year, Thailand would welcome 7 million foreign tourists and exports would increase by 3.6%.
In February, Thai exports were up 16.2% from the same period last year, which the trade minister said was above expectations. According to the Bangkok Post source, global credit rating agency Moody’s will assess Thailand’s rating next month. Last year, S&P Global Ratings maintained Thailand’s sovereign credit rating at BBB+, with the US credit rating agency rating the outlook for the country’s economy as stable.
The Thai government has borrowed heavily during the pandemic – around 1.5 trillion baht over the past 2 years – but the finance ministry is confident the country can still manage that debt. In the first 5 months of fiscal 2022, the government collected 911 billion baht in net revenue, exceeding its target of 46 billion baht, according to the report.
THE SOURCE: Bangkok Post