Thai FinMin sees economy grow over 4% in 2023 on tourism recovery

Adds details, adjusted public debt plan from paragraph 2

BANGKOK, July 26 (Reuters)Thailand’s economy is expected to grow by more than 4% next year, boosted by a recovery in its important tourism sector after an easing of pandemic-related restrictions, the finance minister said on Tuesday.

Thailand’s public debt-to-gross domestic product (GDP) ratio is expected to be 61.3% at the end of September, down from a previous forecast of 62.76% as GDP increases, said Minister Arkhom Termpittayapaisith to journalists.

On Tuesday, the ministry maintained its GDP growth forecast for 2022 at 3.5% after a 1.5% expansion last year, among the slowest in Southeast Asia.

The cabinet on Tuesday approved an adjusted public debt management plan for the current fiscal year ending in September, with new borrowing increasing by 14.2 trillion baht ($387 million) to 1.429 trillion baht ($387 million). $.96 billion), Arkhom said.

Any hike in the central bank’s policy rate is unlikely to have a big impact on existing public debt as the government has largely restructured it at fixed interest rates, but new borrowing could be affected, he said. declared.

An impact on consumption cannot yet be assessed because transmission of the policy rate to financial institutions normally takes three to six months, Arkhom said.

Banks have been asked to help mitigate the impact of rising rates on borrowers, he added.

The central bank should raise its key rate THCBIR=ECI from a record low of 0.50% at its next meeting on August 10 to rein in inflation.

($1 = 36.68 baht)

(Reporting by Kitiphong Thaichareon Writing by Orathai Sriring; Editing by Martin Petty)

(([email protected];))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.