BoT forecasts 4.9% inflation
THE BANK OF THAILAND (BoT) trimmed its 2022 economic growth forecast from 3.4% to 3.2% and raised its headline inflation to 4.9%, above its target range of 1%3%, due to the impact of the war in Ukraine.
The BoT reported that the country’s economic activity in March came under pressure from rising coronavirus infections and higher inflation driven by increasing energy prices, following a recovery in the previous month.
According to the central bank, overall business activity was steady in March, while the baht depreciated following an escalation of the Russian invasion of Ukraine.
Senior BoT Director Chayawadee Chai-Anant told a news conference, however, that the Thai economy should remain on the recovery path.
She said the economy in “the first quarter recovered but not strikingly, compared with a very good fourth quarter”, adding that the recovery was expected to continue in the second quarter of this year.
The economy grew a faster-than-expected 1.9% in the fourth quarter of 2021 from a year earlier.
The BoT said in a statement that the economy in February recovered due to stronger exports and more foreign tourists after an easing of coronavirus curbs that also helped improve manufacturing.
Exports, a key driver of growth, rose 16.0% in February from a year earlier, with imports up 14.2% year-on-year, resulting in a trade surplus of $3.4 billion.
The country recorded a current account deficit of US$652 million in February after seeing a deficit of $2.2bn in the previous month.