Bangkok (VNA) – Thailand’s economy has not been good for a long time, with growth deteriorating as it faces structural problems, Finance Minister Pichai Chunhavajira said on July 10.
Pichai told a business seminar that the government is working to lift economic growth to 3% this year from current projections of about 2.5%, which is low as compared with the 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.
He expressed his hope that tourism would help drive the economy, as at least 35 million foreign tourist arrivals were expected this year.
He also said current household debt at more than 90% of gross domestic product (GDP) needs to be urgently tackled amid rising bad loans.
The minister added that he is hoping the Bank of Thailand (BOT) would relax loan-to-value regulations for mortgages to support the property sector.
The sentiment index for housing developers in Greater Bangkok dropped in the second quarter to its lowest level in 15 quarters, dating back to the third quarter of 2020 during the COVID-19 pandemic./.
