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Inflation to recede to 1%-3% target range this year
-minister
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Minister says baht at 34-35 per dollar is helpful
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Says aggressive rate hikes would burden businesses,
households
(Recasts, adds details, quotes throughout)
By Orathai Sriring and Satawasin Staporncharnchai
BANGKOK, Feb 25 (Reuters) - Thailand's economy is
expected to grow 3.8% this year, helped by a rebound in the
vital tourism sector, while inflation should cool to its target
range, the finance minister said on Saturday.
Domestic spending has increased and the government will
accelerate large project investment to help growth, Arkhom
Termpittayapaisith told a Radio Thailand programme.
As the global slowdown hurts exports, "tourism is our hope,"
he said.
Southeast Asia's second-largest economy expanded a
weaker-than expected 2.6% last year, lagging that of others in
the region as its tourism sector just started to pick up.
The finance ministry has forecast 27.5 million foreign
tourist arrivals this year, after Thailand beat its forecast in
2022 with 11.15 million visitors. There were nearly 40 million
foreign tourists in pre-pandemic 2019.
Arkhom told Reuters this month that economic growth could
beat forecasts, with the return of Chinese tourists.
He said on Saturday that any aggressive interest rate hikes
would increase business costs and household debt, as the central
bank has said rate increases will continue to curb consumer
prices.
Headline inflation should return to the central bank's
target range of 1% to 3% this year, helped by government
measures and lower food prices, Arkhom said. Inflation hit a
24-year high of 6.08% last year.
A baht exchange rate of 34 to 35 per dollar is
helpful for export prices despite falling export volumes, he
added. The Thai currency closed at 34.8 per dollar on Friday.
(Reporting by Orathai Sriring, Kitiphong Thaichareon and
Satawasin Staporncharnchai; Editing by William Mallard)
