World Bank cuts Thai GDP growth outlook to 2.2% this year

BANGKOK (Reuters) – Thailand’s financial system is forecast to develop 2.2% this yr, down from the three.4% projected earlier, as a result of influence of a 3rd wave of COVID-19 infections and weak tourism, the World Financial institution mentioned on Thursday, because the nation battles its greatest outbreak but.

Thailand’s tourism-reliant financial system contracted 6.1% final yr, its deepest droop in over 20 years, with the tourism sector devastated by the influence of the pandemic.

“Financial exercise is just not anticipated to return to its pre-pandemic ranges till 2022, and the restoration is projected to be gradual and uneven,” the World Financial institution mentioned in a report.

After recording 40 million international vacationers in 2019, Thailand is predicted to obtain simply 600,000 arrivals this yr, sharply down from a earlier forecast of 4-5 million, it mentioned.

Good exports and the continuing rollout of fiscal help measures are anticipated to stay necessary drivers of general financial exercise, the World Financial institution mentioned.

The restoration is predicted to speed up in 2022, with GDP progress projected at 5.1%, it mentioned, noting dangers to progress have been skewed to the draw back and the outlook remained unsure.

The GDP outlook in contrast with progress of 1.8% this yr and three.9% in 2022 projected by Thailand’s central financial institution which not too long ago mentioned progress may miss forecasts after the newest stricter coronavirus containment measures.

Given Thailand’s COVID-19 reduction and restoration efforts, its public debt stage is predicted to rise to 62% of GDP in 2022, exceeding the federal government’s goal ceiling of 60%, however dangers to fiscal sustainability remained manageable, the World Financial institution mentioned.

(Reporting by Orathai Sriring; Modifying by Ed Davies)

World Bank cuts Thai GDP growth outlook to 2.2% this year

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