Speaking at a World Bank forum, the minister said that the country’s economy expanded faster than expected in the first quarter of this year due to a revival in the vital tourism sector. The recovery has been supported by a comprehensive and timely policy mix of fiscal and monetary policies.
He predicted inflation will come in below 3% this year, inside the central bank target range of 1% to 3%, but noted that there is still uncertainty over energy prices and US issues to tell whether there will be a reduced need for raising interest rates.
According to a Reuters poll, the central bank is expected to raise its key rate again by a quarter point to 2.0% on May 31 before holding it steady through 2024.
The finance ministry acknowledged that the economy in April was supported by stronger tourism, higher farm production and falling inflation while Thailand was well-positioned to withstand global volatility.
The minister cited that revenue collection is expected to surpass the pre-pandemic level in the 2023 fiscal year, and forecast economic growth of 3.6% this year, after a 2.6% expansion last year.
