Thailand can return to 3% growth within 2-3 years, central bank official says

Thailand's economy could return to a growth rate of around 3% within two to three years if the country addresses some of its structural issues, according to Deputy Governor for Monetary Stability Piti Disyatat of the Bank of Thailand. The central bank's monetary policy will remain accommodative for now, with the policy rate of 1.00% likely to normalise when the economy is ready, he told Reuters.

Piti predicts the economy will grow by 2.3% or slightly higher this year and expand by 1.8% in 2027. The central bank's baseline scenario is to return to a range of 2.8% to 3% the following year. Over a longer term, a growth rate of 2.8% to 3% could be achieved within two to three years, he said during the International Monetary Fund-World Bank annual meetings.

Achieving this growth potential will depend on avoiding negative shocks and tackling structural constraints that can be alleviated, he added.