The Office of the National Economic and Social Development Council (NESDC) reports that Thailand’s economy contracted in the 3rd quarter while noting that it sees the country’s reopening to international tourists as beneficial to the economy and now expects GDP to grow by 1.2% for 2021.
NESDC Secretary-General Danucha Pichayanan revealed that Thailand’s GDP in the third quarter of 2021 contracted by 0.3% due to the Covid situation at the time. Private sector spending and investment declined during the period, although public sector investments expanded by 2.5%. The export value, meanwhile, expanded by 15.7% whereas the export amount rose by 12.2%, effectively providing a cushion for the Thai economy in the third quarter. The NESDC also viewed the reopening of Thailand to international tourists as economically beneficial for the remainder of the year. Mr. Danucha said the projection is for the Thai GDP to expand by 1.2% for 2021.
The secretary-general said that for 2022, GDP is expected to expand by 3.5-4.5% due to the recovery of domestic demand and the manufacturing sector, the recovery of the tourism sector, the expansion of exports, and the disbursal of public sector budgets. However, he made a note of the uncertainties around the situation of COVID-19.
The NESDC chief said his agency was suggesting that the government keep outbreaks limited, accelerate vaccinations, assist businesses and individuals that have been affected, and promote exports. The agency also proposed finding new markets by making use of existing international agreements, promoting private sector investment, maintaining economic expansion via public sector spending and investment, and making further preparations to accommodate foreign tourists. (NNT)
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