The World Bank now anticipates that the Thai economy this year will see an overall 4% growth, thanks to stimulation measures from the government. This projection is an improvement to the country’s economic performance last year where a 6.5% contraction was expected.
The World Bank’s Country Manager in Thailand, Birgit Hansl, revealed that the World Bank is now expecting the Thai economy to see 4% growth this year, and a 4.7% growth in 2022, despite current challenges from the new wave of COVID-19 infections.
She said the tourism-dependent Thai economy last year performed better than expected, thanks to the government’s economic stimulation measures, which have resulted in a better than expected 6.5% contraction.
The World Bank’s Senior Country Economist Kiatipong Ariyapruchya said Thailand’s 1 trillion baht budget for disease response, as well as the economic and social recovery, stays within the fiscal discipline limits, despite being a bigger number than in some other countries.
He has praised the swift actions by the government, especially on the relief payout campaign, which clearly targeted informal workers, saying this campaign is worthwhile and appropriate.
The World Bank said it will continue to monitor the roll out of COVID-19 vaccine in Thailand, which should give the economy a positive push if done in a timely manner, as well as reduce the affect from the pandemic on the overall employment situation.
The group suggests the government should help laid off employees find new jobs, as well as provide skill training in the short term. For the long term, the government should promote better access to jobs for women and the elderly, reduce costs associated with parenting and support social projects aimed at helping senior citizens.