Lower foreign tourist arrival and domestic spending topple Thailand’s growth potential

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The BoT has again slashed the country’s economic growth forecast for this year, to 1.8% from an earlier projection of 3%, due to lower foreign tourist arrival estimates and lower domestic demand, due to the third wave of COVID-19.

The Bank of Thailand (BoT) left its record low key interest rate unchanged on Wednesday, but lowered its 2021 economic growth forecast, as the country struggles with a third wave of coronavirus infections.

Thailand’s central bank’s Monetary Policy Committee voted unanimously to hold the one-day repurchase rate at 0.50% for the ninth straight meeting.



All 22 economists in a Reuters’ poll expect the BoT to remain on hold after three rate cuts last year.

Meanwhile, the BoT has again slashed the country’s economic growth forecast for this year, to 1.8% from an earlier projection of 3%, due to lower foreign tourist arrival estimates and lower domestic demand, due to the third wave of COVID-19. The central bank also cut the economic growth forecast for 2022 from 4.7% to 3.9%. (NNT)