GDP growth in 2021 revised down due to second wave of pandemic

The Fiscal Policy Office (FPO) on Thursday lowered Thailand’s GDP growth projection for 2021 down to 2.8 per cent from the previous forecast of 4.5 per cent in December due to a new wave of coronavirus infections dragging down the economy.

Thailand’s economy will continue to be affected by the pandemic especially in the tourism sector which will not recover anytime soon, the acting director-general of FPO, Kulaya Tantitemit, said.

“Although the economic activities could be boosted by the stimulus measures and exports are likely to rebound, the major concern is decline in foreign tourists from the outbreak impact,” Kulaya added.

The fiscal office added that the Thai economy likely contracted 6.5 per cent in 2020 up from the previous -7.7 per cent it had predicted, helped by effective virus containing measures and persistent stimulus schemes.

The office added that export value in 2020 dropped 6.6 per cent year-on-year, a slightly rosier outlook than a predicted 7.8 per cent decline. The FPO said that this was thanks to the recovering market of trade partners.

In 2021, export are forecast to grow 6.2 per cent, slightly better than the previous estimation of 6 per cent in december.

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