The Asian Development Bank (ADB) has lowered Thailand’s 2021 GDP growth estimation to 0.8%, from its previous estimation of 3% in April, amid continuing concerns over the COVID-19 pandemic across Asia.
According to the ADB’s updated Asian Development Outlook 2021, Thailand’s growth outlook for 2022 was also lowered from 4.5 to 3.9%. The ADB has lowered its 2021 economic growth outlook for all of developing countries in Asia. The ADB forecast growth of 7.1% among Asia’s developing nations this year.
The ADB said new COVID-19 variants, renewed local outbreaks, the reinstatement of various levels of restrictions and lockdowns and slow and uneven vaccine rollouts are weighing down the region’s prospects.
The report also said Thailand’s inflation rate will stay at 1.1% this year and 1% next year, due to overall sluggish demand. The latest COVID-19 wave threatens to undermine Thailand’s economic recovery this year and the next. However, strong growth in merchandise exports and an enabling policy environment could partly offset the large negative impact of COVID-19 on Thai economic growth. (NNT)