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Modest rebound ahead, with 3.9% growth in 2021
Thailand’s economy is set for a modest recovery over the coming years from its recession in 2020. The economy has struggled amid the Covid-19 pandemic as its high reliance on external demand — particularly tourism and travel — has left it particularly vulnerable to a global pandemic.
Despite Thai authorities’ relative success in containing domestic outbreaks of Covid-19, the economy fell into a technical recession in the first half, and the pandemic has resulted in the economy’s deepest slump since the Asian financial crisis.
We expect the recovery to be gradual, given a delayed resumption of global tourism and travel and the weakening of domestic private-sector balance sheets. That said, we have revised our forecasts up slightly; we expect the economy to contract 6.3% in 2020, revised up from 6.6%, before rebounding more strongly to 3.9% year-on-year growth…
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