JSCCIB sticks to GDP prediction, expects 8m foreign visitors this year
The Joint Standing Committee on Commerce, Industry and Banking (JSCCIB) has maintained its 2022 gross domestic product estimation of 2.5 to 4 per cent, sticking to its prediction earlier this year despite the Russia-Ukraine war bombarding the global economy.
“Although Thailand still faces risks that include a declining global economy due to international conflict, rising costs from the fuel price crisis, and inflation, we believe the country will be able to achieve 2.5 to 4 per cent economic expansion thanks to a recovering tourism industry and expanding exports,” JSCCIB chairman Sanan Angubolkul said on Wednesday.
Sanan, who also chairs the Thai Chamber of Commerce, went on to say that global concerns about a shortage of food and raw materials in manufacturing supply chains due to impacts from the Russia-Ukraine war have increased demand for Thai products.
He predicted the export sector would see expansion of 3 to 5 per cent year on year in 2022, while general inflation is expected to be 3.5 to 5.5 per cent.
“However, slowing economic growth in China and Japan could affect exports for the rest of the year, as we can see from April exports to those countries, which are slightly lower than in the same period last year,” he warned.
Sanan said the Thai economy for the remainder of the year would suffer slightly from decreased purchasing power due to inflation, but booming tourism would compensate for this as a result of the government lifting restrictions on foreign arrivals since May 1.
“We are witnessing constantly increasing numbers of foreign tourists since the restrictions were lifted, so the committee believes the number of international visitors could reach 8 million,” he said.
“Meanwhile, the number of domestic tourists has also risen to about 80 per cent of the 2019 total before the Covid-19 crisis. This number is expected to increase once the government’s tourism stimulus campaigns are extended,” Sanan added.