The Bank of Thailand has released its latest overview of the Thai economy, which it expects will grow more than 3 percent in 2021.

Meanwhile, the latest report by the National Economic and Social Development Council (NESDC) reported 2.4 percent growth in 2019, but has downgraded 2020 GDP growth to only 1.5-2.5 percent.

These figures are lower than previous expectations issued by the Bank of Thailand last December, when it expected 2019 to close with 2.5 percent growth, and foresaw 2020 GDP of 2.8 percent this year.

The low performing economy is affected by the drought disaster, delay of the 2020 government budget, and the unexpected outbreak of COVID-19 since late January, which has been an extraordinary development beyond the expectations of any observer.

The Bank of Thailand will be adjusting the new economic forecast on 25th March, prior to which it will be monitoring the development and effects of the COVID-19 virus which has had a significant negative impact this year. The bank expects the virus to cause most damage in Q1, before the situation gradually improves later.

The bank is confident the Thai economy will swing back and expand at more than 3 percent by 2021, should there be no additional negative factors.

About the author

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Sign Up for Our Newsletter

Get notified of our weekly selection of news

You May Also Like

In 2020 Asia will have the world’s largest GDP. Here’s what that means

In 2020 Asia’s GDP will overtake the GDP of the rest of the world combined. By 2030, the region is expected to contribute roughly 60% of global growth. Asia-Pacific will also be responsible for the overwhelming majority (90%) of the 2.4 billion new members of the middle class entering the global economy.

Thailand could Earn $3.4 Billion with Digital and Circular Economy says World Bank

The financial institution said in a statement that Thailand, a $544 billion economy before the pandemic hit, needs an innovation-led growth model. It added that the Kingdom needs to address existing foreign investment constraints in order to create better jobs and become a high-income nation.

Thai Economy Improved in February as Restrictions Eased

According to Chayawadee Chai-Anant, a senior BOT director, the Russia-Ukraine crisis is likely to push up inflation and cause global financial volatility, but Thailand’s external stability remains good.