BANGKOK – Thailand’s economic growth may not reach 3% this year but should come in above that level next year as the government will accelerate investment, the finance minister said on Tuesday.
Southeast Asia’s second-largest economy is strong, with the public debt to GDP ratio expected to remain under its mandated ceiling of 70%, Pichai Chunhavajira told reporters.
“The Thai economy is in a growth phase,” he said.
“Thailand is about to invest more, so it is not at risk of having its credit ratings downgraded,” he added.
The economy grew 1.9% last year, lagging peers.
Last week’s central bank rate cut would also help boost investment and slow the baht’s appreciation, Pichai said.
The baht has appreciated by 2% against the dollar so far this year, making it the region’s second-best performing currency after Malaysia’s ringgit. The baht reached its highest level against the dollar in 31 months in September.
(Reporting by Kitiphong Thaichareon, Writhing by Chayut Setboonsarng and Orathai Sriring; Edited by John Mair)
