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Fiscal strains ease
Thailand’s fiscal situation will gradually improve as pandemic impact recedes, says Fitch Solutions
Thailand’s fiscal position will begin to improve in 2022 as the impact on public finances from Covid-19 gradually recedes.
In the period from October 2020 to August 2021, central government expenditure rose 12.9% year-on-year as fiscal support measures were ramped up because of the pandemic. At the same time, revenues continued to suffer, declining 3.2% year-on-year.
For the full 2020-21 fiscal year to Sept 30, we estimate the budget deficit at 7.4% of GDP, compared with from 4.0% in fiscal 2019-20, reflecting the deterioration in the state budget amid the pandemic.
However, despite lingering uncertainty due to Covid variants, we expect Thailand’s economic recovery to pick up in the fourth…
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