IMF: Thailand has policy room to cushion effects of slow growth

Higher growth: A file picture showing women browsing through clothes at a stall in Bangkok. The IMF revised slightly higher its growth outlook for the Thai economy to 3.2 this year, from 3 in its April report. – Bloomberg

BANGKOK: Thailand can deploy monetary and fiscal steps to cushion the effects of low inflation and slow economic growth as the country’s recovery remains modest and there are downside risks, the International Monetary Fund (IMF) said.

The recovery is expected to advance at a moderate pace in the near to medium term amid risks such as global uncertainty and financial volatility, the IMF said in a statement yesterday after completing its annual review of South-East Asia’s second-largest economy.