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Thai finance minister says economy not good, with growth worsening
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BANGKOK (Reuters) -Thailand’s economy has not been good for a long time, with growth deteriorating as it faces structural problems, the finance minister said on Wednesday.
BANGKOK (Reuters) -Thailand’s economy has not been good for a long time, with growth deteriorating as it faces structural problems, the finance minister said on Wednesday.
The government was working to lift economic growth to 3% this year from current projections of about 2.5%, Pichai Chunhavajira told a business seminar, adding growth was low compared with rates of close to 6% in the past.
Southeast Asia’s second-largest economy expanded 1.9% last year, lagging regional peers, as it faced weak exports and high household debt and borrowing costs. Average economic growth was 1.73% over the past decade.
Pichai said tourism would help drive the economy, as at least 35 million foreign tourist arrivals were expected this year. In 2019, before the pandemic, there was a record of nearly 40 million visitors.
He also said current household debt at more than 90% of gross domestic product needed to be urgently tackled amid rising bad loans.
Pichai said he was hoping the central bank would relax loan-to-value regulations for mortgages to support the property sector.
(Reporting by Orathai Sriring, Kitiphong Thaichareon and Thanadech Staporncharnchai; Editing by John Mair)
Economic growth refers to an increase in the production of goods and services in an economy over a period, often measured as the percentage increase in real GDP.
Household debt is the total amount of money that all adults in a household owe to lenders, including mortgages, credit cards, and personal loans.
Tourism significantly contributes to economic growth by generating revenue, creating jobs, and stimulating local businesses through the spending of visitors.
Financial management involves planning, organizing, directing, and controlling the financial activities of an organization, ensuring efficient use of resources to achieve financial goals.
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