Bank of Thailand maintains 4.4% GDP growth forecast amid stimulus measures

[webfact]

 

A 4.4% GDP growth forecast for the coming year has been maintained by the Bank of Thailand, factoring in the government’s proposed economic stimulus measures.

 

Assistant Governor Piti Disyatat confirmed this projection following the Monetary Policy Committee’s vote on September 27 to hike the benchmark interest rate by a quarter-point, making it a decade-high 2.5%.

 

The committee, however, reduced its 2023 growth forecast from 3.6% to 2.8%, while simultaneously raising the outlook for the coming year from 3.8% to 4.4%. The digital wallet policy, which is part of the government’s planned 560-billion-baht stimulus plan, and the expansion of domestic commerce and investment schemes, are anticipated to spur a 5% economic expansion next year, according to Prime Minister Srettha Thavisin and Deputy Finance Minister Julapun Amornvivat.

 

Piti Disyatat suggests that the government’s intended stimulus measures for the upcoming year could generate a fiscal multiplier of 0.3-0.6%, implying that a 100 baht (US$2.80) spend could potentially increase the GDP by 30-60 baht. Piti also voiced his approval of the gradual policy rate hikes by the Monetary Policy Committee since August 2022, considering it a fitting approach, with the current policy rate nearing a neutral level.

 

by Alex Morgan

Photo courtesy of iStock.

 

Full story: The Thaiger 2023-10-13

 

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[hotchilli]

4 hours ago, webfact said:

A 4.4% GDP growth forecast for the coming year has been maintained by the Bank of Thailand, factoring in the government’s proposed economic stimulus measures.

Yet to be laved when reality kicks in

[vivananahuahin]

I write this date and year, and will check next year the result, 3% will be more realist, they are 2 wars now, are they reading the news papers??