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Thai economy to grow 3.8% in 2021 says EIC

The Economic Intelligence Center (EIC) of Siam Commercial Bank (SCB) has forecast that the Thai economy will grow 3.8 percent next year.

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BANGKOK (NNT) – With the government’s stimulus measures being the main driver of economic recovery, the Economic Intelligence Center (EIC) of Siam Commercial Bank (SCB) has forecast that the Thai economy will grow 3.8 percent next year.

The EIC First Executive Vice President, Dr. Yanyong Thaicharoen, said today that more money is being injected into the economy in the final quarter of the year due to additional long weekends and stimulus measures, including the half-half co-payment, Shop Dee Mee Kuen and We Travel Together campaigns, as well as a measure to strengthen the purchasing power of welfare card holders. These factors are expected to boost economic growth by 0.53 percent.

However, the country’s economy may experience slow growth because of the resurgence of COVID-19 cases in many countries at this time. It may affect the exporters, many of whom are dealing with the appreciation of the Thai baht.

As for the current COVID-19 situation in Thailand, it may affect spending and the confidence of tourists in the short term. The Thai economy is expected to contract 6.5 percent this year, an improvement from the previous forecast of a negative 7.8 percent.

In 2021, the Thai economy is expected to grow 3.8 percent, despite many risk factors. Measures to stimulate the economy and investment are still necessary. They include an extension of the co-pay scheme and the We Travel Together campaign, as well as increasing the purchasing power of welfare card holders. These measures are a sign that the government is ready to use fiscal mechanisms to support the economy and encourage public spending.

As COVID-19 vaccines have been developed and authorized for use in some countries, the situation will help the tourism industry recover in the second half of 2021. Some 8 million international arrivals are expected next year.

GDP to expand 2.6% in 2021 says Kasikorn Bank

The Executive Chairman of Kasikorn Research Center (KRC), Dr. Charl Kengchon, said that the Thai economy is expected to expand 2.6 percent in 2021, driven by government spending, consumption and investment.

The government’s co-pay, Shop Dee Mee Kuen and We Travel Together projects, aimed at stimulating spending, have shown clear results in the short term. People have more purchasing power, and there is more money injected into the economy, particularly the local economy.

However, the growth rate is not significantly high due to some uncertainties. The COVID-19 pandemic will continue to shape the future direction of the world economy.

Despite the COVID-19 vaccine development, its availability and accessibility remain an issue. As a result, the plan to reopen Thailand to international visitors will be slowly implemented in the second half of the year. Other factors include the appreciation of Thai baht and the political situation.

Economics

Asia’s slow rate of vaccination is a thorn in the region’s economic recovery

Southeast Asia has been hit badly. Daily infections for Indonesia, Thailand, Vietnam are at their worst, on a seven-day moving average. The Philippines and Malaysia are not far off their daily infection peaks reached in the second quarter of 2021.

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Last week was tough for the Asia-Pacific region. Many countries responded to stubbornly elevated daily infections by extending or tightening social distancing measures.

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Economics

World Bank lowers Thai GDP growth outlook to 2.2%

In the Thailand Economic Monitor released today, the World Bank adjusted its outlook on Thailand’s economic growth this year to just 2.2% from its previous forecast of 3.4%.

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BANGKOK, July 15, 2021 – Thailand’s economy continues to take a heavy toll due to the COVID-19 pandemic and is projected to expand modestly at 2.2 percent in 2021, revised down from the 3.4 percent growth projected in March, according to the World Bank’s latest Thailand Economic Monitor “The Road to Recovery” published today.

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