Thailand's economy to grow 1 pct in 2021: World Bank

Thailand's economy is expected to grow 1 percent year on year in 2021, and accelerate to 3.9 percent in 2022, according to a report released Tuesday by the World Bank.

The country's economic activity is expected to return to its pre-pandemic levels at the end of 2022, with progress on vaccination and a resumption of tourist arrivals providing support for the recovery, according to the bank's latest Thailand Economic Monitor report titled "Living with COVID-19 in a digital world."

"The economy is expected to gain momentum in the fourth quarter of 2021, fueled by domestic travel and increased local mobility," and the pace of the recovery will depend on the extent of the pick-up in foreign tourists and domestic consumption, World Bank Senior Economist for Thailand Kiatipong Ariyapruchya said.

According to the report, the pandemic has accelerated the adoption of digital technologies, which has the potential to support Thailand's recovery from COVID-19 and ensure a more competitive economy over the longer term.

The scarring from the pandemic shock could be long-lasting, especially in terms of job losses and school closures, while digital-led development can help offset these scarring impacts and ensure that growth is inclusive and equitable, World Bank Country Manager for Thailand Birgit Hansl said.

The bank expected Thailand's economic growth to accelerate to 3.9 percent in 2022 and 4.3 percent in 2023, driven by a recovery in service sector activity.