Saturday, 27 November, 2021

Thai cuts GDP outlook after deadly Covid wave

Thai cuts GDP outlook after deadly Covid wave

BANGKOK: Thailand’s economy is set to expand more slowly than previously expected this year as the country emerges from its deadliest Covid-19 outbreak, the Finance Ministry said.

The ministry on Thursday lowered its gross domestic product (GDP) forecast to 1 per cent expansion, from 1.3 per cent predicted in July. It is the ministry’s fourth revision this year after a wave of cases that began in April triggered restrictions on businesses and travel that crippled growth, report agencies.

South-east Asia’s second-largest economy is likely to grow 4 per cent next year, supported by exports and tourism, according to Pornchai Thiraveja, director general of the ministry’s fiscal policy office. The ministry earlier had forecast growth as fast as 5 per cent for 2022.

Output will accelerate next year after restrictions ease, driven by tourism and local demand, Pornchai said in a briefing, with fiscal support continuing to play a key role. The ministry has been in close talks with the Bank of Thailand and is ready to take further measures if necessary, he said.