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

Thailand's economy has the potential to return to growth of approximately 3% within two to three years, according to a deputy central bank governor. This is contingent upon addressing certain structural issues facing the nation. The Bank of Thailand will maintain an accommodative monetary policy, with the policy rate, currently at 1.00%, remaining at this level until the economy is prepared for a normalisation.

The Bank's projections indicate the economy will likely expand by 2.3% this year and 1.8% in 2027. The central bank's baseline scenario anticipates a return to growth rates between 2.8% and 3% within the year following. In the longer term, the potential trend growth is estimated to be around 2.8% to 3%. This optimistic outlook hinges on the absence of negative shocks and the successful resolution of certain controllable constraints.

The government's initiatives to spur investment in key sectors like semiconductors and data centres are expected to contribute to this growth. Finance Minister Ekniti Nitithanprapas recently echoed a similar forecast, projecting a 2.5% growth next year and a potential 3% growth within three years, thanks to the government's new investment push.