Thai economy recovering on tourism despite global slowdown says its central bank

By TIN Media | Asean News Published 1 year ago on 1 February 2023
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Although domestic consumption and tourism both climbed in December, the central bank reported on Tuesday that exports suffered due to the weakening economy of Thailand's trading partners. 
The Bank of Thailand stated in a statement that economic activity was likely to grow slowly as the crucial tourism sector gained traction and that it would continue to monitor the global economy, expenses, and China's reopening. 
According to Assistant BOT Governor Chayawadee Chai-Anant, who spoke at a news conference, tourism has fared better than initially anticipated because China reopened earlier than anticipated. 
The BOT increased its predictions for foreign visitor arrivals last week from 22 million to 25.5 million this year and 34 million the next year. Pre-pandemic 2019, there were over 40 million tourists. 
The government anticipates at least five million Chinese visitors this year as a result of China's reopening. 
With 11.15 million foreign tourists in 2022, Thailand exceeded its tourism goal, up from fewer than 500,000 in the year prior. 
The baht has gained about 5.4% against the dollar so far this year, making it Asia's best- performing currency. The tourism recovery has contributed to this rise. 
Better economic fundamentals have also contributed to the baht's rise, which had little effect on exports and regular capital flows, according to Chayawadee. 
To avoid having an overwhelming impact on the economy, the BOT would only intervene if the currency was too volatile, she stressed. 
Exports, another important growth factor, fell 12.9% year over year in December, while imports fell by 10.5%, leading to a $1.0 billion trade surplus. 
Thailand's current account surplus in December was $1.1 billion, up from a loss of $0.4 billion in November. 
The second-largest economy in Southeast Asia continued to grow over the previous three months thanks to tourism, although exports declined, according to the BOT. 


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