Thailand’s economy likely to rebound in H1

Families eat dinner in Chinatown on the first day of the Lunar New Year, which ushers in the Year of the Tiger, in Bangkok on February 1, 2022,. Jack TAYLOR / AFP

Bangkok – The Thai economy is likely to start recovering in the first half of this year thanks to the government's better control of COVID-19 infections, the state's economic stimulus measures as well as accelerated infrastructure development, Deputy Prime Minister Supattanapong Punmeechaow has said.

According to Supattanapong, the resumption of the Test & Go tourism scheme on February 1 will also help revitalise the tourism industry.

The Tourism and Sports Ministry expects the resumption of the Test & Go tourism scheme should allow the country to attract at least 8 million tourists this year.

Some 2,500 passengers on 46 flights arrived at Suvarnabhumi airport on February 1, the first day the Test & Go scheme resumed, he said.

The National Economic and Social Development Council (NESDC) has scheduled the announcement of the country's economic figures for the fourth quarter of 2021 and this year's forecast on February 21.

Supattanapong said overall business sentiment is also improving, citing the latest survey by the Japanese Chamber of Commerce on business sentiment among Japanese companies in Thailand that shows sentiment is forecast to improve to reach the highest point in seven years.

Among the challenging negative factors, the rise in the prices of oil and goods is particularly notable, according to Supattanapong. Nonetheless, he said the government is trying its best to tackle such issues.

Thailand’s Joint Standing Committee on Commerce, Industry and Banking (JSCCBI) has maintained its economic growth forecast at 3.0 percent to 4.5 percent this year, despite a rise in coronavirus infections driven by the Omicron variant.

While the virus outbreak had slowed economic activity early in the year, the overall impact is not expected to be severe, said the JSCCBI.

However, higher inflation is a concern since it could hit 3 percent in the first half and mean the economy expands less than expected.