The Bank of Thailand (BOT) has reported a 0.9 percent growth for the Thai economy in December, but said it was concerned that the Omicron coronavirus variant might slow activity for the first quarter of this year.
According to Chayawadee Chai-Anant, senior director of BOT’s Corporate Communications Department, the central bank believes the economy will improve if Thailand continues opening up to foreign tourists. A rise in the Business Sentiment Index has prompted the private sector to invest more in machinery, equipment and infrastructure. Meanwhile, the labor market has also seen recovery based on improved economic activity.
The senior director nevertheless advises that people keep a careful eye on the COVID-19 situation, as it may continue to disrupt the supply chain and keep fuel prices high. Food prices have risen temporarily due to floods while energy prices remain high amid surging world oil prices.
Chayawadee also urged the government to issue new stimulus measures, adding that overall consumer confidence and improving household incomes have helped revitalize the economy.
The BOT has reduced its GDP growth projection to 3.4 percent from 3.9 percent due to a drop in people’s purchasing power and business concerns over possible restrictions to prevent the spread of the Omicron variant. The Central bank said Thailand is different since its economy has not recovered as quickly as that of other industrialized nations. As a result, the Monetary Policy Committee will prioritize economic stability before raising interest rates. (NNT)
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