Thailand is set to achieve economic growth of 1.2 percent this year, according to government spokesperson Thanakorn Wangboonkongchana. He further added the Thai economy will most likely grow by 3.5 to 4 percent next year.
He told the media, “Prime Minister Prayut Chan-o-cha is working to implement strategic policies to promote the country’s growth while curtailing the Covid-19 pandemic.”
Thai Finance Minister Arkhom Termpittayapaisith said that the reopening of the tourism sector to vaccinated visitors has helped boost Thailand’s economy in the fourth quarter. He also added that economic growth could reach as much as 4.5 percent, which is higher than his own forecast of 4 percent.
Last month, it was reported that Thailand’s economy shrank by 0.3 percent in the third quarter of this year due to a drop in consumption levels. Covid-19 restrictions have hit domestic activities as well as the tourism sector of Thailand severely. However, previously, it was forecasted that GDP would shrink by 0.8 percent during the period.
Data released by the National Economic and Social Development Council showed that Thailand’s economy shrank a seasonally adjusted 1.1 percent in the third quarter when compared to the previous quarter.
Phacharaphot Nuntramas, chief economist at Krung Thai Bank told the media, “Despite a strong performance from the export sector, the overall economy was severely affected by the lockdown measures and poor sentiment regarding the government’s handling of vaccine procurement.”