The government forecasts Thailand’s public debt will reach 62% of GDP in the fiscal year 2022.
According to Finance Minister Arkhom Termpittayapaisith, the country’s public debt could reach 62% if the government borrows two sets of loans in order to rejuvenate the country’s economy. This prediction assumes the government borrows 500 billion baht under the second emergency loan decree and another 700 billion baht in the fiscal year 2022 to cover the budget deficit.
The country’s public debt increased from 6.9 trillion baht (41.0 percent of GDP) in 2019 to 9.64 trillion baht (59.6 percent of GDP) in December 2021. This is due to the government borrowing under the two emergency loan decrees during the last two years to combat the Covid-19 pandemic.
The Finance Minister noted the possibility that public debt might be lower than 62 percent if Thailand’s economic growth increases more than 4 percent this year. The National Economic and Social Development Council predicted economic growth in the range of 3.5-4.5 percent. Rising demand, improved exports, higher state investment, and domestic tourism rebound were all factors in the projection.
The Finance Minister added that the dispute between Russia and Ukraine will definitely impact Thailand because both nations are important trading partners for the country, and Russian tourists have played a significant role in rejuvenating the tourism industry. However, he assures that the country will see stable growth and authorities will adjust its strategies depending on the situation. (NNT)
 |
 |
 |
