BoT Governor: GDP to Surpass Target at 2.1% Driven by 400 Billion Baht Loan

Khaosod•Economy•24d ago

Reader Briefing

The Bank of Thailand's GDP growth forecast for the current year has been revised upwards to 2.1%, a significant increase attributed to a new 400 billion baht government loan, while inflation is expected to be within targets.

•The Governor of the Bank of Thailand (BOT), Vitai Ratanakorn, predicts Thailand's GDP will grow by 2.1% this year.
•A government loan of 400 billion baht is expected to stimulate economic growth by 0.6%.
•Inflation for the current year is projected to be between 3.0-3.1%, with a reported 2.89% in April 2026.
•Thailand is not considered to be in a 'Stagflation' state due to its inflation trend.

Overview

•The government plans to issue a royal decree for a loan of 400,000 million baht, resulting in increased economic stimulus.
•The 400,000 million baht loan is projected to boost the economy by 0.6%, leading to an overall GDP growth of 2.1% for the year.
•The BOT's initial projection for the year's GDP growth was lower, with expectations of 1.5% based on a 300,000 million baht loan.
•Inflation for the current year is estimated to be between 3.0-3.1%, a revision from the previous forecast of 2.9%.
•In April 2026, inflation was recorded at 2.89%, consistent with the BOT's prediction of monthly inflation rising to 4-5% before moderating in Q2 2027.
•The BOT Governor, Vitai Ratanakorn, stated that Thailand is not currently experiencing 'Stagflation' because the condition requires persistently low economic growth and high inflation.
•Vitai Ratanakorn commented that Thai inflation is at the lower end compared to international inflation rates.
•For the year 2027, GDP growth is forecast at 1.6%, revised down from a previous estimate of 2% due to higher base growth this year.

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Key Quotes

Vitai Ratanakorn

"The BOT assesses that the government's issuance of a royal decree for a 400,000 million baht loan will stimulate economic expansion by 0.6%."

ธปท.ประเมินผลจากการที่รัฐบาลจะมีการออกพระราชกำหนดกู้เงิน วงเงิน 400,000 ล้านบาท จะมีส่วนกระตุ้นเศรษฐกิจให้ขยายตัวเพิ่มขึ้น 0.6%

Vitai Ratanakorn

"Thailand has not yet entered 'Stagflation' because, by definition, 'Stagflation' requires a depressed economy with persistently high inflation."

ไทยยังไม่ได้เข้าสู่ภาวะ “Stagflation” เพราะตามนิยาม “Stagflation” นั้น เศรษฐกิจจะต้องตกต่ำและเงินเฟ้อสูงขึ้นและค้างอยู่ยาว

Vitai Ratanakorn

"Comparing Thailand's inflation with other countries, Thai inflation is at the lower end, while many countries are at the upper end."

ถ้าเปรียบเทียบเงินเฟ้อของไทยกับต่างประเทศ เงินเฟ้อไทยจะอยู่ขอบล่าง และหลายประเทศจะอยู่ขอบบน

Key Entities

Person

Vitai Ratanakorn(วิทัย รัตนากร)

Governor of the Bank of Thailand (BOT) who provided economic forecasts and analysis.

Organization

Bank of Thailand(ธนาคารแห่งประเทศไทย)ℹ️

The central bank of Thailand, responsible for monetary policy and economic stability, which provided GDP and inflation forecasts.