Thai GDP growth of 4 per cent still possible next year despite Omicron

Thailand’s economy should still be able to achieve growth of 4 per cent next year, despite uncertainty over the spread of the Omicron coronavirus variant, the finance minister said on Thursday.

The country’s vital tourism sector, in particular, should be recovering after a reopening, and an improved global economy will also support Southeast Asia’s second-largest economy, Finance minister Arkhom Termpittayapaisith told a Money Expo.

His comments came after the government earlier reinstated its mandatory COVID-19 quarantine for foreign visitors and scrapped a quarantine waiver due to Omicron, having only reopened more broadly last month.

“It’s too early to assess the impact of Omicron. We’ll have to wait and see,” Arkhom told reporters later on Thursday, adding the government was still supporting economic activity.

The economy remains in the recovery phase, and growth of “4 per cent is still possible” in 2022, also helped by investment in an eastern economic zone and increased exports, he said. For this year, he predicted 1 per cent growth.