Thai central bank to revise down forecasts for 2023 growth and inflation
Thai central bank to revise down forecasts for 2023 growth and ... Reuters
sdgtalks
Summary
- Lower 2023 GDP growth, inflation seen lower than forecast
- Economic recovery intact but softer than expected
- Policy interest rate nearly balanced
- Thai king swore in new government on Tuesday
Thailand’s Economic Growth and Inflation Forecast Lowered for 2023
Thailand’s central bank chief announced that the country’s economic growth and inflation for 2023 are expected to be lower than previously forecast. This is due to softer-than-expected exports and tourism spending. The impact of slowing global growth, a faltering recovery in China, and prolonged political uncertainty after the May election have all contributed to the challenges faced by Southeast Asia’s second-largest economy.
Economic Recovery Intact but Weaker Than Expected
Despite the challenges, the overall economic recovery in Thailand remains intact. The country is still expecting 29 million foreign arrivals throughout the year, which will support the tourism industry. However, the recovery is weaker than initially anticipated.
Policy Interest Rate and New Government
The policy interest rate in Thailand is currently close to a neutral level, according to the Bank of Thailand (BOT) Governor Sethaput Suthiwartnarueput. On Tuesday, Thailand’s king swore in the new 11-party coalition government, which will focus on addressing people’s needs and implementing economic stimulus policies to boost the economy.
Revised Forecasts and Inflation Rate
Updated forecasts for 2023 economic growth and inflation in Thailand are expected to show downward revisions. The earlier projection of 3.6% economic growth and 2.5% headline inflation will likely be adjusted. In August, Thailand’s annual headline inflation rate was 0.88%, higher than forecast but still below the BOT’s target range of 1% to 3%. Sethaput expects inflation to gradually return to the target range.
Challenges and Outlook
Fitch, a global credit rating agency, highlighted that Thailand’s recovery could be constrained by a global slowdown. The new coalition government’s economic stimulus policies may lead to higher government debt, although they will support short-term growth. High household debt is also a significant problem that will take time to address. The volatility of the baht is another concern, but the central bank aims to maintain market forces while minimizing excessive fluctuations.
Conclusion
Thailand’s economic growth and inflation forecasts for 2023 have been revised downward due to challenges in exports and tourism spending. However, the country’s economic recovery remains intact, and the new government is focused on implementing policies to address people’s needs and stimulate the economy. The central bank will continue to monitor the policy interest rate and work towards maintaining sustainable inflation and GDP growth.
SDGs, Targets, and Indicators Analysis
1. Which SDGs are addressed or connected to the issues highlighted in the article?
- SDG 8: Decent Work and Economic Growth
- SDG 9: Industry, Innovation, and Infrastructure
- SDG 10: Reduced Inequalities
- SDG 12: Responsible Consumption and Production
- SDG 17: Partnerships for the Goals
The article discusses Thailand’s economic growth, inflation, and tourism spending, which are all related to SDG 8 (Decent Work and Economic Growth). The impact of global growth, China’s recovery, and political uncertainty also connect to SDG 9 (Industry, Innovation, and Infrastructure) and SDG 10 (Reduced Inequalities). Additionally, the mention of responsible consumption and production and the need for economic stimulus policies align with SDG 12 (Responsible Consumption and Production) and SDG 17 (Partnerships for the Goals).
2. What specific targets under those SDGs can be identified based on the article’s content?
- SDG 8.1: Sustain per capita economic growth
- SDG 8.2: Achieve higher levels of economic productivity
- SDG 8.5: Full and productive employment and decent work for all
- SDG 9.1: Develop quality, reliable, sustainable, and resilient infrastructure
- SDG 10.4: Adopt policies to promote inclusive economic growth
- SDG 12.2: Achieve sustainable management and efficient use of natural resources
- SDG 17.16: Enhance the global partnership for sustainable development
Based on the article’s content, the targets mentioned above are relevant to the issues discussed. These targets focus on sustaining economic growth, improving productivity, promoting decent work, developing infrastructure, reducing inequalities, promoting sustainable resource management, and enhancing global partnerships.
3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?
- GDP growth rate
- Inflation rate
- Exports
- Tourism spending
- Household debt
The article mentions indicators such as GDP growth rate, inflation rate, exports, tourism spending, and household debt. These indicators can be used to measure progress towards the identified targets under SDGs 8, 9, 10, 12, and 17.
SDGs, Targets, and Indicators Table
| SDGs | Targets | Indicators |
|---|---|---|
| SDG 8: Decent Work and Economic Growth | 8.1 Sustain per capita economic growth 8.2 Achieve higher levels of economic productivity 8.5 Full and productive employment and decent work for all |
GDP growth rate Inflation rate Exports Tourism spending |
| SDG 9: Industry, Innovation, and Infrastructure | 9.1 Develop quality, reliable, sustainable, and resilient infrastructure | GDP growth rate Inflation rate Exports |
| SDG 10: Reduced Inequalities | 10.4 Adopt policies to promote inclusive economic growth | GDP growth rate Inflation rate Household debt |
| SDG 12: Responsible Consumption and Production | 12.2 Achieve sustainable management and efficient use of natural resources | GDP growth rate Inflation rate Tourism spending |
| SDG 17: Partnerships for the Goals | 17.16 Enhance the global partnership for sustainable development | GDP growth rate Inflation rate Exports Tourism spending |
Behold! This splendid article springs forth from the wellspring of knowledge, shaped by a wondrous proprietary AI technology that delved into a vast ocean of data, illuminating the path towards the Sustainable Development Goals. Remember that all rights are reserved by SDG Investors LLC, empowering us to champion progress together.
Source: reuters.com
Join us, as fellow seekers of change, on a transformative journey at https://sdgtalks.ai/welcome, where you can become a member and actively contribute to shaping a brighter future.
