BANGKOK- Thailand’s economy contracted less than expected in the third quarter as businesses started a slow recovery from the coronavirus-driven slump in activity, while the reopening of the tourism sector raised hopes of a steady revival.
The government upgraded its economic growth outlook to 1.2 percent this year, compared with a previous forecast of 0.7 percent-1.2 percent expansion, and projected 3.5 percent-4.5 percent growth in 2022, thanks to an easing of COVID-19 curbs and a reopening to overseas travellers to reboot its vital tourism industry.
Southeast Asia’s second-largest economy tumbled 6.1 percent last year.
The economy shrank a seasonally adjusted 1.1 percent in the September quarter from the previous three months, data from the National Economic and Social Development Council showed, versus a forecast 2.5 percent drop in a Reuters poll, and a revised seasonally adjusted 0.1 percent growth in the June quarter.
From a year earlier, gross domestic product (GDP) shrank 0.3 percent in July-September, a shallower than expected fall than the forecast 0.8 percent drop, and against a revised 7.6 percent growth in April-June.
“We expect GDP to rebound strongly in the final quarter now that cases are falling, restrictions are being lifted and the vaccine rollout is gaining momentum,” said Gareth Leather, senior Asia economist at Capital Economics.
