Fiscal Policy Office Expects Thai GDP in 2022 to Grow 4% from Recovery in Tourism

Fiscal Policy Office (FPO) cut its estimate on Thai economy in 2021 from 1.3% expansion in the previous meeting to 1.0% due to the impact of Covid-19 in Thailand that intensified in the third quarter, resulting in an estimation of an economic slowdown in the second half of 2021 from stringent Covid-19 measures and lower economic activities during the period.

Nevertheless, FPO stated that the Covid-19 situation has improved gradually along with the progress of vaccine distribution that led to a relaxation of restriction measures. The reopening from November 1 will result in more economic activities, especially in the tourism, commercial, transportation and entertainment sector.

In addition, FPO expected Thailand GDP in 2022 to expand 4.0% as a result of a recovery in the tourism sector after the Covid-19 has eased.