Thai Finance Ministry Downgrades 2021 GDP Growth Forecast to 1.3% on Covid Outbreak

The Finance Ministry’s Fiscal Policy Office (FPO) slashes its forecast for Thailand’s economic growth in 2021 to 1.3%, down from the 2.3% initially expected, as the country struggles with the chronic Covid-19 outbreak that has significantly affected economic activity and tourist arrivals in Thailand.

Thailand’s exports, on the other hand, continue to grow in pace with the economic recovery and global trade. Exports increased by 14.5% in the first five months of this year, resulting in an estimated 16.6% growth in the value of Thai exports for the whole year (expected range 16.1-17.1%), up from the prior forecast of 11%.

For the year 2022, GDP is seen rising 4-5% in anticipation of the outbreak subsiding and the return of full international tourists.