Thai economic recovery slower than expected, Bank of Thailand governor confirms

[webfact]

 

Economic recovery in Thailand is underway but progress is slower than anticipated, particularly in the areas of tourism and exports, according to Sethaput Suthiwartnarueput, governor of the Bank of Thailand (BoT). In a recent business seminar, Sethaput expressed concerns over a less-than-rosy picture of the nation’s economy, with exports and tourism spending falling short of expectations.

 

Despite these challenges, he mentioned that Thailand is expected to welcome 29 million foreign visitors this year. In an effort to stabilise the economy and curb inflation, the central bank has incrementally raised its key rate seven times, reaching 2.25% since last August. Sethaput acknowledged the risk of inflation due to the El Nino weather pattern, which could potentially escalate food prices.

 

Still, he maintained that the overall economic recovery remains intact, albeit with some softness in growth and inflation.

 

by Alex Morgan

Picture courtesy of Apichart Jinakul, Bangkok Post

 

Full story: https://thethaiger.com/news/business/thai-economic-recovery-slower-than-expected-bank-of-thailand-governor-confirms

 

-- Thaiger 2023-08-24

 

- 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.

 

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[2baht]

2 hours ago, webfact said:

Despite these challenges, he mentioned that Thailand is expected to welcome 29 million foreign visitors this year.

Hold your breath a little longer, they are coming in droves! You'll all be rich! ????

[hotchilli]

2 hours ago, webfact said:

In a recent business seminar, Sethaput expressed concerns over a less-than-rosy picture of the nation’s economy, with exports and tourism spending falling short of expectations

Thailands expectations are always on the rosy side..

[morrobay]

Short falls in tourism and exports. Is that why the Bank of Thailand continues to prop up the baht to artificial levels?? We shall see how that works out. 

[RichardColeman]

Problem here is that they are expecting Joe Foreigner to pay 50% more for their long flights to get there first, and only a certain amount are gullible to do this - that and China is flat out broke out and are not coming.

[morrobay]

The Thai economist ,Chartchai wrote an article on the situation. Titled " Why do I Smell Tom yum kung cooking"And among the observations : 

[ezzra]

All i know that the real estate business for sellers of properties is very quiet, no buyers around.

[observer90210]

It's not the average tourist on a visa waiver, stayaing for say à 15 day holiday who will spend much besides girlies or booze that often is maybe not declared.

 

There is high spending power amongst the retirees but many are discouraged to stay long term due to all the visa hassles and paperwork. Their money gets utlimately spent elsewhere during their winter breaks.

[jacko45k]

19 minutes ago, observer90210 said:

It's not the average tourist on a visa waiver, stayaing for say à 15 day holiday who will spend much besides girlies or booze that often is maybe not declared.

 

There is high spending power amongst the retirees but many are discouraged to stay long term due to all the visa hassles and paperwork. Their money gets utlimately spent elsewhere during their winter breaks.

I actually think it is likely the other way around,,, average 2 week millionaires spend a lot, retirees less so.  Pre Covid it was being claimed the Chinese independent travelers were the ones who spent the most. 

[Middle Aged Grouch]

2 minutes ago, jacko45k said:

I actually think it is likely the other way around,,, average 2 week millionaires spend a lot, retirees less so.  Pre Covid it was being claimed the Chinese independent travelers were the ones who spent the most. 

The 2 week millionaires may spend on hookers,  but the retiree owning a house will spend less often ok, but when he/she spends for stuff to maintain the house or other, it boosts much more cash at the end of the day.

[jacko45k]

5 minutes ago, Middle Aged Grouch said:

The 2 week millionaires may spend on hookers,  but the retiree owning a house will spend less often ok, but when he/she spends for stuff to maintain the house or other, it boosts much more cash at the end of the day.

Hotels, transportation, entertainment, meals out... I know quite a lot of retirees, they are mostly economical in their habits. Not so many own houses..... 

[Gottfrid]

Same thing over and over again. They just never learn that real expected things, start with people capable of making realistic expectations.

[Cake Monster]

2 hours ago, morrobay said:

The Thai economist ,Chartchai wrote an article on the situation. Titled " Why do I Smell Tom yum kung cooking"And among the observations : 

A brief look at the patterns of exchange over the past 3 Months will tell you that the BOT have been spending a massive amount to stabilize the Baht

[Elkski]

So tourists matter rhan they want to admit.  Seems they need tj be thinking of quality servicecand experience for the tourists.  And that more of the World wa5ches Thailand in the news and this election fiasco does not help for investors of tourists that stay longer then 10 days. 

[The Theory]

I guess there are some estimates/wishes base on what it was before covid. I don't see it happens again. The world economy is different now, even China. 

[retarius]

3 hours ago, observer90210 said:

It's not the average tourist on a visa waiver, stayaing for say à 15 day holiday who will spend much besides girlies or booze that often is maybe not declared.

 

There is high spending power amongst the retirees but many are discouraged to stay long term due to all the visa hassles and paperwork. Their money gets utlimately spent elsewhere during their winter breaks.

I have often wondered abut this. Surely people living in Thailand is worth 10 or more visitors. But having travelled all over the world, there is a clear inverse correlation between the stage of development of a country and the extent of its immigration hassle ie the least developed countries have the worst immigration paperwork. The answer, so it's not so strange. But since the Thais are desperate for money, I would have thought they should be attracting western farangs, and rich Asians like Japanese, Koreans etc to retire here. Instead they push them away with stupid and capricious immigration 'rules'.

 

[BritScot]

4 hours ago, jacko45k said:

I actually think it is likely the other way around,,, average 2 week millionaires spend a lot, retirees less so.  Pre Covid it was being claimed the Chinese independent travelers were the ones who spent the most. 

Why this derogatory myth that expats and retirees are on the breadline spending insignificant foreign currency in Thailand.  I/We personally spent over 100,000baht each month every month within Thailand and now all retirees and expats give the Thai economy 800,000baht of foreign currency to hold. That's a lot of foreign dosh!!! Far more than most tourists!!!

[Phil1964]

6 hours ago, RichardColeman said:

Problem here is that they are expecting Joe Foreigner to pay 50% more for their long flights to get there first, and only a certain amount are gullible to do this - that and China is flat out broke out and are not coming.

Only 50% more?

During European holiday times flights to Thailand are double or more what they were in 2019, pre-pandemic.

Tickets in the £600 plus region are appearing but are for bookings 6 months plus in advance, that or the journeys involve long layovers across 1 or 2 stops.

However, flight prices to north America, Caribbean, India, even Latin America are nearly back at pre-pandemic levels.

 

Add in that hotel rates and cost of excursions in Thailand have gone up quite a bit too.

 

 

[jacko45k]

3 hours ago, BritScot said:

Why this derogatory myth that expats and retirees are on the breadline spending insignificant foreign currency in Thailand.  I/We personally spent over 100,000baht each month every month within Thailand and now all retirees and expats give the Thai economy 800,000baht of foreign currency to hold. That's a lot of foreign dosh!!! Far more than most tourists!!!

Why all this hubris among the Expat/retiree community would be my question.... acting as if they are doing Thailand a big favour by living here!  They do it for their own self interest I assure you......

You added a lot of embellishment that I never actually said.... 

I too spend approx 100k/month, maybe slightly under, it isn't so cheap to live well here nowadays.... but a  tourist will spend more if he stayed 4 weeks.... they buy flights, pay hotels which I do not, eat out more, travel more. And this idea of Expats giving 800k foreign currency to hold is nonsense, it is in Thai baht for most, it is not given, it is banked, and for sure they will want it back! And many even duck that by using agents. I think a refundable single payment of  800kbaht for 20 years is as cheap a chips! A major reason for Expats living here is it is cheaper. to live than home.