Thailand is forecasted to enter a new economic phase from 2022 to 2024, according to a statement given by Kobsak Pootrakool, senior executive vice-president at Bangkok Bank, to the Bangkok Post.
“We are getting close to the end of the tunnel. It is a transitional period with fluctuations. If we can make it through, we should be able to ride Asia’s economic growth wave, which can be prominent in the global economy after 2024.”
Kobsak also shared that the obstacles currently faced by the country include the inflation of oil prices, which, in turn, affects the value of real estate development. The prices of construction materials, on the other hand, gained rapidly since last year.
According to Sakkapop Panyanukul, senior director in the economic and policy department at the Bank of Thailand, inflation will increase by more than 2 percent during the first half of 2022, which is a 0.3 percent increase from an earlier forecast of 1.7 percent.
A fluctuation in the financial system and technological disruption are also factors, to which Kobsak said, “They should digitise and improve their business, reduce costs and lock in interest rates for financial costs.”
Another key driver would be tourism, which is expected to rebound by the end of this year.
The country’s tourism sector, which made up about a fifth of the economy before the pandemic, was devastated by the Covid outbreak.
From 1 to 17 February, air passengers went up by 134 percent year-on-year. This number was mostly driven by international travellers, which increased by 688 percent to 230,000.
“A target of 5 million travellers this year is possible, with the potential of reaching 20-25 million next year,” said Kobsak.
Thailand’s economy could grow by 3.5 percent to 4.5 percent this year if there is a recovery in domestic demand, continued growth in exports, and return of foreign tourists according to Bloomberg.
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