A recovering economy
The Thai economy shrank by 2.6% in the first quarter of this year, an improvement from a 4.2% contraction in the previous quarter after it was boosted by a continued increase in agricultural production, recovery of non-agricultural production, acceleration in domestic investments, rise in government consumption expenditure and improvement in exports of goods.
The wave of Covid-19 infections in the final quarter of 2020 however, resulted in a lower private consumption expenditure than expected, forcing the government to lower its economic growth forecast for a second time to 1.5%-2.5%, down from the initial prediction of 6.1% earlier in 2020.
To achieve the economic growth, the government will enforce more disease control measures to prevent outbreaks from happening. Next to that, the vaccine acquisition programme will be expedited and public information campaigns will be rolled out to inform and boost confidence in vaccinations. Finally, the government will implement targeted economic measures to support impacted people and businesses and it is preparing the re-opening of the Kingdom to foreign tourists.
