BANGKOK: Thailand’s economic growth is projected at 2.7% this year and 2.9% next year, reflecting planned fiscal stimulus measures and a pickup in public investment, the International Monetary Fund (IMF) said.
Private consumption growth is expected to remain robust, boosted by government stimulus, while private investment is also projected to increase, the Washington-based IMF said in a Nov. 26 statement after a staff visit to Southeast Asia’s second largest economy.
The mission welcomes the Bank of Thailand’s decision to cut the policy interest rate by 25 basis points in October, the IMF said, adding a further reduction would support the recovery.
“Given remaining high uncertainty and two-sided risks to inflation, the mission advises the authorities to stand ready to adjust their monetary policy stance in a data and outlook-dependent manner, with the flexible exchange rate continuing to act as a shock absorber,” the IMF said.
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The Bank of Thailand will next review monetary policy on Dec. 18.
The central bank described its surprise rate cut last month as a policy recalibration.
Thailand’s economy grew 3.0% in the third quarter, the fastest growth in two years, and the state planning agency predicts growth of 2.6% this year, picking up from last year’s 1.9% that lagged peers.
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