The Central Bank of Thailand predicts continued economic growth despite uncertainty

Thailand’s economy is projected to grow by 2.7% in 2024 and a pair of.9% in 2025, led by growth in tourism, private consumption and exports of electronics and machinery. However, the recovery in the commercial sector, especially within the automotive sector, stays slow, which contributes to disparities in household income growth.

Key conclusions

• The Monetary policy Committee (MPC) maintained this policy rate of interest at 2.25% to support economic stability. The MPC noted that inflation was in keeping with its objectives and stressed the importance of a robust monetary framework to administer growing uncertainty.
• Thailandthe country’s economy is predicted to grow by 2.7% in 2024 and a pair of.9% in 2025, with tourism being the important factor, private consumptionand export of electronics. However, industrial sector recovery is slow, especially in automotive productioncausing household income disparities.
• Inflation is predicted to stay below goal, with forecasts of 0.4% in 2024 and 1.1% in 2025, attributable to stable oil prices. Credit growth slowed down, non-performing loans relief after CoVID-19 has increased, and the electrical vehicle market has an impact on automotive loans. The MPC monitors credit and government debt aid programs.

The Monetary policy Committee (MPC) concluded its last meeting in 2024 in favor of maintaining this policy rate of interest constant at 2.25% for a yr. This decision is meant to support the long run economic stabilitywhen inflation reaches the goal. The MPC emphasized the importance of reliability monetary policy to counteract growing uncertainty.

Thailand’s economy is predicted to grow by 2.7% in 2024 and a pair of.9% in 2025, driven by progress in tourism, private consumption and exports of electronics and machinery. Despite these positive trends, the recovery in the commercial sector stays slow, especially in automotive production, which contributes to disparities in household income growth. The Thai government is predicted to implement supportive fiscal policies to stimulate economic activity, specializing in infrastructure development and incentives for foreign investment.

However, external threats akin to global economic uncertainty and geopolitical tensions may pose challenges to export performance. In addition, structural issues akin to labor shortages and uneven regional development can hamper long-term growth prospects, requiring targeted reforms to extend productivity and competitiveness in all sectors.

Inflation is predicted to stay low at 0.4% in 2024 and 1.1% in 2025 because of stable global conditions oil prices. However, world trade politics and geopolitical risks create ongoing economic uncertainty.

Credit growth slowed, reflecting reduced investment in key sectors non-performing loans (NPL) relief from CoVID-19 has increased. Increasing occurrence electric vehicles (EV) influenced the automotive loan market, including: SMEs in high-risk industries facing tighter credit conditions.

The MPC actively monitors credit expansion and government initiatives akin to “Khunsoo Rao Chuay”, a program geared toward reducing debt for vulnerable groups, support financial stabilityand helping sectors under economic pressure.

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