Thai economy maintains growth amid global headwinds

Bangkok (VNA) - Thailand’s economy is projected to recover to its pre-pandemic level in 2022, but the pace of growth will be slower than expected in 2023 owing to global headwinds, according to the World Bank (WB).

In its ‘Thailand Economic Monitor for December 2022: Fiscal Policy for a Resilient and Equitable Future’ report, released on December 14, the bank forecast the economy to grow by 3.4% in 2022 and 3.6% next year.

The growth in 2023 has been revised down by 0.7 percentage point compared to June projections reflecting faster-than-expected decline in global demand. The tourism sector's recovery and private consumption will remain the major drivers of growth.

The report also finds that the Thai economy has shown resilience to recent global shocks. Economic growth accelerated to 4.5% in the third quarter fueled by resurgent private consumption and strong tourism inflows following economic reopening in May and the authorities’ measures to mitigate cost-of-living pressures.

According to the report, Thailand’s fiscal response to COVID-19 significantly mitigated the impact of the crisis on household welfare. Poverty is, however, projected to rise to 6.6% in 2022 from 6.3% in 2021 as the COVID-19 relief measures start to be phased out amid elevated inflation.

The report recommends improving jobs and earnings opportunities among low-income groups, while creating fiscal space to achieve adequate spending on social assistance for the most vulnerable groups, including elderly, disabled and extreme poor people. Financing the necessary public investments in physical and digital infrastructure and human capital to promote growth and human development in the longer term will also be critical for achieving sustainable poverty reduction./.