Thai exports are expected to grow 17per cent this year, the highest growth rate in 12 years, the country's finance minister Arkhom Termpittayapaisith said on Monday. Arkhom also told an online forum that gross domestic product next year should grow around 4per cent or in a range of 3.5per cent to 4.5per cent. Thailand's economy shrank by 0.3per cent in the third quarter, as COVID-19 restrictions hit tourism and domestic activity, though the drop was less than expected. About 1 trillion baht (US$29.63 billion) of government infrastructure would help Southeast Asia’s second-largest economy achieve growth of 4per cent next year, he said. The Bank of Thailand (BOT) intended to keep interest rates low for next year, central bank senior director Don Nakornthab said at the forum. "This will keep financial conditions at levels that are not too tight," he said.
The BOT, which sees economic growth of 0.7per cent this year and 3.9per cent next year, has left its benchmark interest rate at a record low of 0.50per cent since May, 2020. The major risks for next year included the new Omicron coronavirus variant, which could hit the tourism sector, Danucha Pichayanan, the head of the state planning agency, told a separate economic forum. Thailand's tourism sector had started seeing a gradual recovery after the country reopened for vaccinated travellers. The agency expects five million foreign travellers next year, compared with 40 million in 2019. Other risks include those stemming from households that are still fragile especially in terms of credit card debt, said Danucha.