BOT Maintains 2023 GDP Forecast and Urges Policy Focus on Stability

[snoop1130]

 

BANGKOK (NNT) - Bank of Thailand (BOT) Governor Sethaput Suthiwartnarueput has said Thailand’s economy is expected to grow 3.6% this year, adding that fiscal and monetary policy should prioritize stability rather than economic stimulus.

 

Sethaput said, "The economy is resilient and is able to withstand multiple shocks." The Thai economy grew 2.6% last year.

 

The BOT last month raised interest rates a quarter a percentage point to 1.75%, and has raised its key rate by a total of 125 basis points since August - less aggressive than many of its regional peers.

 

According to Sethaput, the central bank has the tools to support the financial system in the event of any problems.

 

When asked about policies being proposed by political parties ahead of elections in May, he said economic stimulus was not necessary at the moment.

 

He said, "Fiscal and monetary policy needs to be normalized and prioritize stability ... markets are ready to punish policies that don’t make sense, that upset stability."

 

Thailand will hold elections next month, with many parties promising handouts and giveaways, from cash transfers to raising the minimum wage.

 

Source: https://thainews.prd.go.th/en/news/detail/TCATG230410134455614

 

-- © Copyright NNT 2023-04-10

 

- Cigna 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.

 

The most versatile and flexible rental investment and holiday home solution in Thailand - click for more information.

[StayinThailand2much]

What others say: 

 

“OECD predicts SE Asian growth to decline

 

Weaker global demand the culprit”

 

(Source: A newspaper, bearing the name of Thailand’s capital, 10th Apr. 2023)

Edited April 10, 2023 by StayinThailand2much

[hotchilli]

13 hours ago, snoop1130 said:

Sethaput said, "The economy is resilient and is able to withstand multiple shocks." The Thai economy grew 2.6% last year.

Teflon Thailand.

[sammieuk1]

Never trust a governor with to many "put's" in his name, example! where have you "put" the foreign currency reserve????

[nigelforbes]

11 hours ago, StayinThailand2much said:

What others say: 

 

“OECD predicts SE Asian growth to decline

 

Weaker global demand the culprit”

 

(Source: A newspaper, bearing the name of Thailand’s capital, 10th Apr. 2023)

The Bangkok Post article dated 10 April says estimates have been reduced, that's all.

[StayinThailand2much]

17 minutes ago, nigelforbes said:

The Bangkok Post article dated 10 April says estimates have been reduced, that's all.

But the BOT seems to have other opinions. Which one is too optimistic/pessimistic?

[nigelforbes]

7 minutes ago, StayinThailand2much said:

But the BOT seems to have other opinions. Which one is too optimistic/pessimistic?

A difference of 0.2% growth on USD 520 bill over one year, my goodness, that's massive! :)) 

 

It was reported in the Bangkok Post on 10 April that Thailand's growth for 2023 would be 3.8%, up from 2.6% in the previous year. The BOT now says in the OP that growth will be 3.6% in 2023. Frankly, this is like counting the number of angels on the head of a pin and expecting to be right! Thai GDP is circa USD 520 bill, the difference between the two estimates is 0.2% or about USD 1 bill, that's less than one twentieth of one months average exports. Does it really matter, it is after all a forecast (not an exact science) which is meant to be indicative and is always subject to revision. If conditions warrant then BOT will adjust interest rates again and that will impact on GDP growth, we wont know that until that time comes.