Thai economy poised to achieve full recovery from pandemic
Thailand’s economy is on the brink of achieving a full recovery from the adverse effects by the pandemic, according to the most recent report by the Bank of Thailand, which said that a rebound in tourism is reverberating to other sectors.
The Bank of Thailand’s report indicated that the economy would return to pre-COVID-19 levels by the end of this year or in the first few months of 2023. It predicted 3.3 percent growth in 2022 and 3.8 percent next year. It said that private sector spending and tourism will be the main driving forces of the recovery, but other sectors would also start returning to pre-pandemic expansion levels.
The central bank also added that the Thai financial system was stable, commercial banks had healthy reserves, and regulators were also seeing improvements in household debt, which has been a perennial problem.
Like dozens of countries, Thailand endured economic hardship after COVID-19 began spreading around the world. While the Kingdom was able to contain the coronavirus to a level the World Health Organization (WHO) labels an outbreak, as opposed to an epidemic, the public health measures used to protect the public proved to have unfavorable effects on business and the economy.
The government limited entry to the Kingdom for several months, along with mask mandates, testing and quarantine requirements. The measures undesirably affected tourism, which accounts for roughly 10 percent of economic growth directly and as much as 20 percent indirectly.
Thailand’s borders are now open and the government has lifted restrictions for visitors. The Kingdom’s manufacturing sector also held up well during the pandemic, with fewer supply chain disruptions than many other countries.
Photo courtesy of https://www.bot.or.th/English/Pages/default.aspx