Thailand recorded 5.57 million foreign tourist arrivals from January to March 18 this year, government spokesperson Traisuree Taisaranakul said on Wednesday.
The vital and rapidly recovering tourism sector continues to support the economy while exports are weakening as global demand slows, analysts say.
Finance Minister Arkhom Termpittayapaisith echoed that view on Wednesday, saying the economy is expected to expand by 3-4% this year. Monetary and fiscal policies must work together to ensure growth and stability, he added.
The number of foreign tourist arrivals could reach 27 million this year, up from 11.15 million in 2022, he told a business seminar.
As inflation is easing locally, there is no need for monetary policy and interest rates in Thailand to follow US moves, the minister added.
Consumer price inflation in February declined to 3.8% annually, from 5.1% the month before, according to Ministry of Commerce figures.
“The direction of the Thai policy rate will not follow that of the US, and it must ensure the economy can fully recover,” he said.
The Bank of Thailand is expected to raise its key rate by a modest quarter-point, to 1.75%, at its next meeting on March 29.
Mr Arkhom also reiterated there has been no impact on Thailand from the problems in the global banking sector.
The country’s fiscal position was stable as its public debt — at 61.26% of gross domestic product (GDP) as of February — was not very high, and foreign debt was also low, he said.
As the country gears up for an election on May 14, government spending should continue as usual but there may be some impact on new investment projects before a new government is formed, Mr Arkhom told reporters.
The baht is likely to remain volatile, driven by external factors, but its moves have stayed within a range seen earlier in the year, he said.
“I want the baht to be stable, but (we) should not look it daily,” he added.
