Thailand economic growth forecast revised to 1.3% under limited business and tourism activities

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Miss Kulaya said the current outbreak is impacting economic activity and the expected number of foreign tourists this year, but improved exports and fiscal measures will lend some support.

Thailand’s Finance Ministry has slashed its 2021 economic growth forecast to 1.3%, from 2.3%, the third such revision this year, as Thailand fights its biggest COVID-19 outbreak to date.

Fiscal Policy Office Director-General Kulaya Tantitemit said the current outbreak is impacting economic activity and the expected number of foreign tourists this year, but improved exports and fiscal measures will lend some support.



She said, although Thailand is preparing to reopen, the ministry now expects only 300,000 foreign tourists this year, down from an earlier forecast of 2 million.

According to Ms. Kulaya, the government expects to use 200 billion baht, of a new 500-billion baht borrowing plan this year, to finance stimulus measures. The Finance Ministry is also ready to implement additional support measures, as appropriate, as the fiscal position remains strong and that the public debt to GDP ceiling of 60% can be raised if necessary. (NNT)