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.