Thailand’s recovery has regained momentum on the back of strengthening domestic demand and a stronger rebound in international tourist arrivals. The Thai economy grew at a faster pace of 2.4 percent (yoy) in 1H 2022, after growing by 1.5 percent in 2021, underpinned by strengthening domestic demand and a stronger rebound in tourist arrivals. Overall, GDP is expected to expand by 3.2 percent in 2022 and 4.8 percent in 2023.
Inflation rose sharply due to the surge in global oil and commodity prices. Headline inflation is projected to rise to 6.2 percent in 2022 from 1.2 percent in 2021 due to the surge in global oil and commodity prices, as well as from the higher cost pass-through to consumers as broad-based diesel and cooking gas subsidies, as well as electricity tariff discounts are rolled back.
As fiscal and monetary policy support are gradually withdrawn, policymakers will need to prioritize its post-pandemic recovery efforts and deal with the long-term challenges posed by the economic scars, rapidly aging population and climate change.