The Thai economy is expected to grow by 3% this year and 3.7% next year

The government planning agency said today that Thailand’s economy is expected to grow by 3% this year and 3.7% next year, driven by exports, rising domestic demand and a recovery in tourism.

Danucha Pichayanan, head of the National Council for Economic and Social Development, said that exports, the main driver of growth, have maintained their momentum despite the impact of the Russian invasion of Ukraine on the global economy.

Southeast Asia’s second-largest economy will benefit from a major tourism sector that is expected to attract between 7 and 10 million international visitors this year.

This compares to 428,000 foreign tourists last year and nearly 40 million in 2019 in the pre-epidemic period.

Although inflation reached 7.1% in May, the highest level in more than 14 years, manufacturers are passing little of the cost on to consumers.

Price controls on key commodities and government actions are helping to offset rising oil prices, leading to a slowdown in oil prices.

Jeremy Zook, director of Fitch Ratings, said tourism development will support the weaker currency. The Thai currency is trading at its weakest level against the dollar in more than 5 years.

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