BANGKOK – The Bank of Thailand (BoT) believes the Thai economy will continue to recover, but voiced concern over the persisting drought crisis.
BoT Governor Veerathai Santiprabhob said the drought crisis will remain a key factor of economic growth, as rural household income has declined due to the lack of water for farming activities. He also blamed household debt as another major factor of the economic slowdown.
The BoT Governor further stated that the Thai economy continues to be susceptible to foreign monetary policies especially in the U.S., Europe and Japan. These foreign policies will likely cause further currency volatility, as foreign leaders try to restore their nations’ economies.
However, Dr. Veerachai added that government investment plans and its economic stimulus measures should cause noticeable growth in the third quarter fiscal 2016, despite a slump in the tourism sector.