Thailand Monthly Economic Monitor : 19 July 2022
The economy showed better-than-expected signs of improvement in Q2 2022 due to stronger domestic demand, a rebound in the tourism sector, and continuing expansion of goods exports. However, rising inflationary pressure and slowing global demand are...
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| Format: | Brief |
| Language: | English |
| Published: |
Washington, DC
2022
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| Online Access: | http://documents.worldbank.org/curated/en/099358507192253228/IDU0d59083ca0c01e04ce90bcf406891171b4126 http://hdl.handle.net/10986/37745 |
| Summary: | The economy showed
better-than-expected signs of improvement in Q2 2022 due to
stronger domestic demand, a rebound in the tourism sector,
and continuing expansion of goods exports. However, rising
inflationary pressure and slowing global demand are creating
significant headwinds to the outlook. The economy is
expected to grow at 2.9 percent in 2022 and 4.3 percent in
2023. Inflation surged to a 14-year high in June, prompting
the Bank of Thailand (BOT) to signal interest rate
normalization. The fiscal deficit remained large as the
government continued to ramp up measures to counter the
impact of the rising cost of living and the pandemic,
including through support for the tourism sector and
lower-income groups as well a s subsidies on energy prices.
The Thai banking system remains resilient, despite
deteriorated asset quality. The Thai baht continued to
depreciate in July as investor confidence waned and the
current account deficit persisted. |
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