Economic growth will be subdued this year due to the impacts of the pandemic, but it could reach 5-6% in 2022 if there are no fresh outbreaks, a deputy prime minister said on Wednesday.
Thailand’s most prolonged epidemic has eased, leading to a relaxing of restrictions and to more foreign visitors to reboot the key tourism sector.
The country is past the worst, while fiscal and financial stability remains sound, Energy Minister Supattanapong Punmeechaow told a business seminar.
The country is moving to its goal of a 70% vaccination rate by year-end, while sustaining manufacturing to support exports, a key driver of growth, he said.
The economy will also get support from 600 billion baht of investment pledges expected this year, and a government scheme to attract 1 million long-term foreigners over the next five years with spending of 1 trillion baht, he said.
In 2019, nearly 40 million foreign tourists spent 1.91 trillion bahta. The finance ministry predicts just 180,000 foreign arrivals this year, with 100,000 in the fourth quarter.
On Wednesday, the Joint Standing Committee on Commerce, Industry and Banking raised its 2021 economic growth outlook to 0.5% to 1.5% from zero to 1% growth due to the reopening.
"The economy started to recover but not fast... importantly, positive momentum must continue, no on-and off closures," group chairman Sanan Angubolkul, also head of the Thai Chamber of Commerce, told a briefing. He earlier predicted 600,000 foreign arrivals in November and December.