The Bank of Thailand reported that the Thai economy keeps recovering, but there are global problems that need to be solved, such as high household debt and overdue loans (NPL), which will increase in the future.
One of the reasons why household debt in Thailand has been growing recently is the decline in household income due to COVID–19. The only thing that will help solve these problems is to increase people's earnings and restore all spheres of the country's economy.
Although the rate of the state currency against the US dollar has not changed much, the country's position in the global economy has shaken.
Specialists revised the country’s expected GDP figures and reduced the figures to 3.4% in 2022 and 4.7% in 2023, with expected inflation in 2022 and 2023 to 4.9% and 1.7%, respectively. Despite the political situation in the world, Thai exports are expected to grow by 7% this year.
The Omicron strain does not affect domestic economic activity as much as previous COVID-19 virus strains. This gives hope that the government will not take harsh measures and the number of tourists will grow in the country. This year, the number of tourists is expected to reach 5.6 million people, and next year – 19 million people.
Nevertheless, the Thai economy still faces downside risks in three main areas:
- the problem of shortage of raw materials in production;
- an increase in the cost of living with a decrease in income;
- possible Omicron outbreak.
But Thailand’s economy is still expected to grow next year, as it did before the COVID-19 pandemic.