Thailand’s economy is forecasted to grow at about 4% due to recovering domestic consumption and the tourism industry.
The Fiscal Policy Office (FPO) forecasted that the Kingdom’s economic growth would be in the 3.5-4.5% range this year, citing factors such as domestic spending as the COVID-19 pandemic in many countries, including Thailand, becomes less severe. Another factor included in the forecast is the resurgence of the tourism industry, which expects more than 7 million international tourists to visit the country in 2022.
Pornchai Thiraveja, director-general of the FPO, said high household debt, which accounted for 89.3% of GDP in the third quarter of last year, is unlikely to affect domestic demand this year. He cited debt incurred from spending on products and consumption as low compared to other categories included in household debt.
The director-general added that the rising prices of some products should be temporary and would not dent domestic purchasing power. High global crude oil prices are likely to fall in the second quarter, in line with an anticipated increase in oil supply.
The FPO predicts that the Omicron coronavirus variant will affect the Thai economy for the first and second quarters of this year, as the number of infections are expected to peak in March before declining in the second half of 2022. Other issues posing risks to economic growth that the FPO is closely monitoring include uncertainties related to COVID-19, the volatility of the global economic and financial situation, and the rise in global energy and oil costs.(NNT)
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