SCB Intel Center Says Thailand Currently in Stagflation

[snoop1130]

 

BANGKOK (NNT) - The Siam Commercial Bank’s Economic Intelligence Center (EIC) believes that Thailand is currently in a stagflation phase due to an unstable economic recovery and rising prices.

 

According to Yunyong Thaicharoen, SCB’s chief wholesale banking officer and EIC economist, the EIC has revised the nation’s economic growth forecast from 3.2 to 2.7 percent due to the Russia-Ukraine conflict, which resulted in a spike in fuel and commodity prices. The country’s annual average headline inflation rate is also expected to jump to a 14-year high of 4.9 percent from a previous estimation of 1.6 percent.

 

Keep up to date with all things Thailand - Join our daily ASEAN NOW Thailand Newsletter - Click to subscribe

 

A higher inflation rate means that the country’s domestic spending will recover slower than expected. This in turn affects private consumption, causing companies to readjust product prices. The EIC believes that, due to the slow economic recovery and a number of external risk factors, Thailand’s recovery to pre-pandemic levels will be delayed until the third quarter of next year.

 

The EIC expects the central bank’s Monetary Policy Committee to maintain its policy rate at 0.5% throughout 2022 as it focuses on measures to support economic growth. Meanwhile, the baht is expected to fall to around 33.5-34 against the US dollar in the short term, before recovering slightly to 32.5-33.5 in late 2022 due to the promising recovery of the tourism industry.

 

-- © Copyright NNT 2022-03-30

 

- Aetna offers a range of visa-compliant plans that meet the minimum requirement of medical treatment, including COVID-19, up to THB 3m. For more information on all expat health insurance plans click here.

 

- Follow ASEAN NOW on LINE for breaking COVID-19 updates

[hotchilli]

13 hours ago, snoop1130 said:

The Siam Commercial Bank’s Economic Intelligence Center (EIC) believes that Thailand is currently in a stagflation phase due to an unstable economic recovery and rising prices

Is stagflation the same as in a rut?

????

[Isaan sailor]

Someone needs to tell the Baht—it’s headed in the wrong direction this week.

[metisdead]

A post with a chart that was copy and pasted from some site without a supporting link to the source of information has been removed.  Please provide a link to the source of information when posting. 

[kimamey]

before recovering slightly to 32.5-33.5 in late 2022 due to the promising recovery of the tourism industry.

 

Is that true?

[Caldera]

Oh, we're already there, who would have thought!

[Burma Bill]

20 hours ago, snoop1130 said:

 

deleted

Edited March 31, 2022 by Burma Bill
additional information