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Thai Finance Minister says growth may not reach 3% in 2024, but will in 2025

Published 10/22/2024, 04:53 AM
Updated 10/22/2024, 04:55 AM
© Reuters. Thailand's new Finance Minister and Deputy Prime Minister Pichai Chunhavajira reacts on the day of the cabinet meeting at Thai Government House in Bangkok, Thailand, May 7, 2024. REUTERS/Chalinee Thirasupa/ File Photo

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.

© Reuters. Thailand's new Finance Minister and Deputy Prime Minister Pichai Chunhavajira reacts on the day of the cabinet meeting at Thai Government House in Bangkok, Thailand, May 7, 2024. REUTERS/Chalinee Thirasupa/ File Photo

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.

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