The Governor of the Bank of Thailand affirms that Thailand is far from stagflation, indicating that while inflation has risen, it will not be prolonged.

The Governor of the Bank of Thailand stated that the Thai economy is not yet experiencing stagflation, emphasizing that the true definition requires low economic growth coupled with prolonged high inflation. He affirmed that Thailand is not yet a cause for concern and that the Monetary Policy Committee has not yet discussed this issue.

30 April 2569 – Mr. Vitai Ratanakorn, Governor of the Bank of Thailand (BOT) It was revealed that, in economic terms, stagflation requires key conditions: a low-growth economy coupled with high inflation, and that inflation must be sustained and prolonged, impacting the economy significantly over the long term. This is not the current situation in the Thai economy.

"The Thai economy is not in a worrying position about entering stagflation, as it is assessed that inflation is not expected to remain high for an extended period that would affect the economic structure. Therefore, we believe the Thai economy is not yet facing this problem."

Mr. Witai further stated that, when compared to the context of stagflation in other countries, stagflation typically has a direct impact on employment, leading to a decrease in the number of employed persons or an increase in the unemployment rate. Currently, Thailand has not yet shown any clear signs of a decline in employment.Why

However, the issue of stagflation was not raised at the most recent Monetary Policy Committee (MPC) meeting. Although many believe Thailand has already entered this phase, based solely on the observation of low economic growth and high inflation, this may be a misconception. The essence of stagflation is that the inflation rate must remain high for an extended period.

"We can confirm that Thailand is not yet in a state of stagflation, as the inflation rate has not been persistently high for an extended period."

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