Weak Thai baht will help restore tourism despite no Chinese tourists

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Fiscal and monetary metrics will continue to support the nascent recovery as vital tourism lags behind without Chinese tourists, while the government has assured it is not overly concerned about the weak baht, which it says , has been very beneficial to the competitiveness of Thailand’s massive export sector and tourism. industry.

The Bank of Thailand forecasts 6 million foreign tourist arrivals this year and 19 million next year as pandemic-era brakes ease. He also predicts economic growth of 3.3% this year after growth of 1.5% last year.

Policymakers vowed that fiscal and monetary settings will continue to support the nascent recovery as vital tourism lags behind without Chinese tourists, who cannot visit due to strict travel restrictions that prohibit domestic travel. foreign.

China accounted for more than a quarter of the 40 million foreign visitors in 2019 before the pandemic.

Unlike past global tightening cycles, Thai capital markets remain in good shape thanks to much higher foreign exchange reserves and low external debt, reducing any immediate pressure to match US rate hikes.

Thailand has seen no net capital outflow this year. Instead, its bond and equity markets attracted net inflows of 157 billion baht.

The government has also assured that it is not too concerned about the weak baht, which it says has been very beneficial for the competitiveness of Thailand’s massive export sector and tourism industry.(NNT)


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