Thailand’s economy unexpectedly rebounds in the fourth quarter; however, it had the slowest recovery in southeast Asia last year. While the country’s tourism sector is quite lower than what it was before the pandemic, the recovery pace will probably be low in 2022.
Thailand’s gross domestic product (GDP) grew 3.5%-4.5% thanks to factors like negligible effect of omicron, higher in-home demand, along with consistent exports and public investment. Strong exports and improved domestic demand brought in growth in the last quarter.
In a news conference, Danucha Pichayanan, chief of the National Economic and Social Development Council (NESDC) said Thailand’s economy performance will be OK in the first quarter of 2022; however, inflation issue exists. He added exports, financial disbursement, tourism and national consumption will support the economy.
The state planning agency’s expectation for the tourism industry, accounting for roughly 12% of the GDP, was 5.5 million tourists in 2022 as the Thai government lifted quarantine for foreign tourists this february. The number is larger than 5 million forecasted for November. Compared to the year 2019, with 40 million foreign tourist visits, these figures are still low.
The economic recovery, which relies on tourism, will probably be slow in 2022, expected analysts at Capital Economics.