It has certainly been an annus horribilis or a year of great misfortune for the battered Thai economy. The Covid-19 pandemic has caused carnage in the tourism industry which Thailand depends on heavily, a major reason why it underperformed its peers. Consumer and business confidence was not helped by an initially slow vaccination roll-out, a 10% depreciation of the baht, continued street protests and infighting within the government.

We believe that the worst is now over. More than that, just as Thailand underperformed other regional economies on the way down, there is a good chance that it will outperform during the recovery, as its bruised tourism sector comes back to life and confidence revives. While there is always the possibility that the pandemic might throw yet more unpleasant surprises at us, we think that the economic damage it can cause will be contained. If there is a significant risk to the upbeat view on Thailand in 2022, it is that political turbulence could resurface.

Lacklustre growth in third quarter marked the trough for the economy

To continue reading,

Sign in to access this Premium article.

Subscription entitlements:

Less than $9 per month
3 Simultaneous logins across all devices
Unlimited access to latest and premium articles
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)

Stay updated with Singapore corporate news stories for FREE

Follow our Telegram | Facebook