Thailand economy on path to recovery, finance minister says

Despite global uncertainty, Thailand's economy remains on the path to recovery and further interest rate hikes will be gradual to make sure that recovery continues, the finance minister said on Wednesday.

Arkhom Termpittayapaisith said that Southeast Asia's second-largest economy is stable, with relatively low interest rates, sufficient liquidity and strong fiscal and financial positions.

The Thai economy has proved that it is highly resilient and can weather the storms, he said, adding that the annual third-quarter growth of 4.5 per cent was the fastest pace in more than a year.

The tourism sector is a key driver for Thailand's economy, with 3.4 per cent expected to grow this year and 3.8 per cent next year, according to Arkhom.

He said late last month that the economy may not reach a forecast growth of 3.8 per cent next year due to a global economic slowdown, but this year's outlook should be achieved.

Thailand's economic recovery has lagged that of other Southeast Asian countries, with its crucial tourism sector starting to rebound this year.

The economy grew 1.5 per cent last year, which is the slowest pace in the region.