‘Bank of Thailand’ looks at Omikron affecting the Thai economy in the first quarter of this year, expecting the second half of the year that the tourism industry will return to bustling
on December 30 Ms. Chayawadee Chai-anan, Senior Director Corporate Communications Department Bank of Thailand (BOT) revealed that initially the Monetary Policy Committee (MPC) meeting assessed that the spread of the Covid-19 virus Omicron species will not have a clear effect on the Thai economy in December And the overall picture of the 4th quarter of 21, we believe that the Thai economy will continue to expand at a level close to the previously expected 0.9%.
The outbreak of the Omicron species It may affect in the first half of the year. However, it is foreseen that the arrival of tourists in the second half of 2022 will not affect tourism in the first half of the year, but the Bank of Thailand is still The MPC has included factors in economic activity that may be affected in its latest projection of 65, which has been revised downward. of the economy to 3.4% from 3.9%
Ms. Chayawadee said that due to Thailand’s dependence on the tourism sector a lot. causing the economic recovery to be relatively slow causing Thailand’s policy interest rate to remain low which is not like other countries that have a relatively high economic recovery It is above the level before the coronavirus outbreak. Therefore, the policy interest rate was raised in line with the economic recovery. As for solving the debt problem, the BOT has adjusted its policy to be more flexible in solving the problem. especially the debt restructuring which now has specialized financial institutions to join as well This will help ease the burden of public debt in the future.
The Thai economy in November 2021 improved from the previous month. The export of goods increased in accordance with the demand of trading partner countries. and supply chain problems that gradually eased For the number of foreign tourists increased after the opening of foreign tourists. The private sector’s domestic expenditure increased both in consumption and investment. Meanwhile, government spending also plays an important role in stimulating the economy. especially through transfer payments However, the recovering demand led to a gradual improvement in industrial production.
economic stability Headline inflation increased as fresh food prices were temporarily affected by the flooding situation. while energy prices remained high in line with world oil prices. As for core inflation, there was a slight increase. The labor market gradually improved in line with the recovery of economic activities. but overall still fragile For the current account balance returned a small surplus. because the balance of income, services and money transfers has a smaller deficit while the trade balance is more surplus