Thai economy set to be affected by global turmoil for another 2 years

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Photo by Lillian SUWANRUMPHA / AFP

Thailand’s economy will be affected by the global economic turmoil, which could last for two years, during which Thai export growth will contract while domestic inflation will rise, said Kobsak Pootrakool, a former minister in the Prime Minister’s Office and currently Senior Executive Vice President of Bangkok Bank yesterday (Saturday).

Speaking on “2022 economic turmoil and how to deal with it”, he said all countries must be prepared to deal with the consequences of international geopolitical conflicts, energy and food crises, turmoil in global capital markets and capital and an economic downturn. in China.

These will impact emerging markets and the Thai economy over the next 1-2 years and will slow the growth of Thai exports, which recorded a 20% increase last year.

He noted, however, that Thailand’s economy will benefit from the recovery in tourism, with hopes that the number of tourists arriving for the rest of this year will increase to around one million per month.

Kobsak Pootrakool

To stop inflation, Kobsak said the Bank of Thailand aims to raise the key rate by 0.25% three times, from 0.5% to 1.25%, by the end of the year.

He also said the increase in the policy rate will help slow the reduction in Thailand’s foreign exchange reserves, which have now fallen to $215 billion from $260 billion.

He said the central bank is closely monitoring domestic inflation, which was 7.66 percent in June, adding that the average inflation was 2.58 percent, which is not high.

He pointed to energy prices showing signs of easing, saying the price of crude oil had now fallen to $90-100 a barrel from a peak between $130 and $140.

Regarding Thailand, Kobsak said that although there is economic turbulence, there are opportunities for Thailand to increase investment and create new opportunities, such as in electric vehicle, alternative energy , modern logistics and food industries.

For the general public and investors, he suggested that they keep up to date with the latest economic situation, so that they can make the right assessments.

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