The World Bank has lowered its forecast for Thai economic growth in 2021 and 2022 as the tourism industry has been hit hard by the COVID-19 outbreak.
The World Bank lowered its forecast for Thai growth this year to 3.9%, down 1.2% from the June 2021 forecast. Last year’s growth forecast was lowered to 1.0%, down 1.2% from the previous forecast.
Moreover, the World Bank noted that Thailand is heavily dependent on tourism revenues. Therefore, it is unlikely that the economy will return to pre-Covid 19 levels by 2023.
At the same time, the World Bank lowered its forecast for global economic growth this year to 4.1%, down 0.2% from its June 2021 forecast.
The global economy continues to face risks from the Covid 19 pandemic, new viral mutations, inflation expectations, tight financial conditions and record debt. In addition, income inequality in the world is increasing.