Thai economy bunce to growth in Q4 on exports and tourism

Thai economy bunce to growth in Q4 on exports and tourism

Thailand’s economy bounced back more quickly than expected in the fourth quarter. The economy retired to growth on robust and recover its domestic activity post relaxing the restriction on borders and opening it for foreign visitors.

After a 6.1 percent contraction in 2020, Thailand’s economy grew 1.6 percent in 2021, one of the slowest in Southeast Asia.

In addition to the 1.8 percent growth in the December quarter, data from NESDC showed the economy expanded 0.9 percent in the third quarter after it contracted 0.9 percent in the third quarter. A year before the GDP grew 1.9 percent in October-December, leaving behind the forecast of 0.7% rise.

Despite a limited impact from the Omicron-driven coronavirus outbreak, stronger domestic demand, a recovery in tourism, and continued government support for exports and public investment, the government maintained its economic growth outlook of 3.5-4.5 percent.

On the basis of indicators so far, Danucha Pichayanan, NESDC’s chief, said there is some inflationary pressure in the first quarter of the year.

He said, “The main driver will be exports and fiscal disbursement, with tourism and domestic consumption adding to the support”.