Thai economy returns to growth in Q4 on tourism, outlook maintained By Reuters

By Orathai Sriring and Kitiphong Thaichareon

BANGKOK (Reuters) -Thailand’s economic system returned to development within the fourth quarter, rebounding extra shortly than anticipated, on strong exports and a restoration in home exercise following an easing of coronavirus curbs and as borders reopened to international guests.

The federal government maintained its financial development outlook at 3.5%-4.5%, relying on a restricted impression from the Omicron-driven coronavirus outbreak, stronger home demand, a restoration in tourism and continued help from exports and public funding.

In 2021, Thailand’s economic system grew 1.6%, one of many slowest in Southeast Asia, after a 6.1% contraction in 2020.

Southeast Asia’s second-largest economic system expanded a seasonally adjusted 1.8% within the December quarter from the earlier three months, information from the Nationwide Financial and Social Improvement Council confirmed, outstripping a forecast 1.4% improve in a Reuters ballot, and after a revised seasonally adjusted 0.9% contraction within the third quarter.

The economic system is more likely to carry out properly within the first quarter of this 12 months, based mostly on indicators to this point, however there’s some inflationary strain, NESDC chief Danucha Pichayanan informed a information convention.

“The principle driver might be exports and financial disbursement, with tourism and home consumption including to the help,” he mentioned.

From a 12 months earlier, gross home product (GDP) grew 1.9% in October-December, beating a forecast 0.7% rise, and towards a revised 0.2% contraction within the earlier three months

Exports, a key driver of Thai development, jumped 21.3% within the December quarter from a 12 months earlier whereas non-public consumption rose 0.3%. There have been about 340,000 international vacationers within the fourth quarter of 2021, up from 45,000 within the earlier three months.

Thailand resumed a quarantine waiver for international vacationers this month to assist revive its very important tourism sector, which usually accounts for about 12% of Thai GDP.

The state planning company anticipated 5.5 million vacationers in 2022, up from a forecast of 5 million in November. However that is nonetheless properly under 40 million international vacationers in 2019, suggesting the financial restoration might be sluggish and uneven.

The company maintained its forecast export development at 4.9% this 12 months.

The federal government has launched billions of {dollars} of reduction measures to revive the economic system whereas the central financial institution has left its key fee unchanged at a report low of 0.50% since Might 2020.