Thailand
Thailand: Govt aims for 4% growth
The government will work to achieve economic growth of 4% next year despite a lacklustre recovery in tourism, according to Finance Minister Arkhom Termpittayapaisith.
The ministry and the Bank of Thailand will work closely to coordinate financial and fiscal policies to ramp up growth to 4% next year, Mr Arkhom told an economic seminar at Thammasat University on Sunday.
The minister predicted, however, that the tourism industry will not recover fully next year. This is despite the economy reporting 1.3% growth in the first nine months of this year.
The Nov 1 reopening of the country has given a head start to the tourism revival.
“But we won’t see tourist arrivals bouncing back to 40 million (the pre-Covid 19 level). It’s possible, though, that the figure will reach 10 million,” he said, adding tourism will recover gradually.
A full recovery of the sector could come in 2023, he said.
Public consumption has taken a battering as a result of dwindling tourism and the curbs that ground economic activities to a halt.
Consumption accounts for half the country’s gross domestic product. To offset the impact, the government has launched a raft of stimulus and relief measures financed by a combined 1.5 trillion baht in borrowing.
Mr Arkhom said exports were doing well as shipping operators had forecast the sector will expand by 15% this year and 5-6% next year. Exports will generate significant foreign exchange.
Turning to farms, the government has introduced aid for farmers in the form of a crop price guarantee. This month alone, about 140 billion baht of the aid is being allocated to rice farmers nationwide. Rubber price guarantees will also be rolled out, which will stimulate spending in rural areas.
The minister added the consumer confidence index has been rising for three straight months and is the highest it has been in seven months. “The business confidence index is also looking up,” Mr Arkhom said.
Next year, the government is injecting into the economy an investment fund worth one trillion baht drawn mostly from the current fiscal year budget as well as from what is left of the 1.5 trillion baht loans.
Source: https://www.bangkokpost.com/business/2234523/govt-aims-for-4-growth