By Orathai Sriring and Kitiphong Thaichareon
BANGKOK (Reuters) – Thailand’s economy remained on the recovery path in November, boosted by increased tourism and domestic consumption while exports deteriorated as global demand slowed, the central bank on Thursday.
Economic activity was likely to recover further as the vital tourism sector gathered steam, the Bank of Thailand (BOT) said, adding it would monitor slowing global demand, rising prices and China’s border reopening.
China’s move should help Thailand’s tourism sector in 2023, Assistant BOT Governor Chayawadee Chai-Anant told a news conference. The BOT’s current forecast for foreign tourist arrivals next year is at 22 million.
“What we’ve looked at is quite conservative and will be reviewed next year,” she said.
For 2022, Thailand has received 11 million foreign tourists since the start of the year, according to the finance minister, already exceeding the BOT’s 10.5 million projection.
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In November, the central bank forecast the economy would grow 3.2% this year and 3.7% in 2023, boosted by private consumption and tourism.
Southeast Asia’s second-largest economy, however, is facing slowing-than-expected global demand, Chayawadee said.
Exports, also key driver of growth, dropped 5.5% year-on-year in November, and Thailand recorded a current account deficit of $0.4 billion in that month, the BOT said in a statement.
Chayawadee said monetary policy tightening would focus on economic conditions and the BOT would monitor any impact of commercial banks’ loan rate increases on the economy.
The BOT has raised its key rate by a total 75 basis points since August to 1.25% to curb inflation. It will next review policy on Jan. 25, when a further hike is expected.
(Reporting by Orathai Sriring and Kitiphong Thaichareon; Editing by Kanupriya Kapoor)