1.2.3Market and Competition 1) Thai Economy and Banking Industry Thai Economy in 2021 Merchandise exports support Thai economic rebound, whereas domestic economy improved along with better COVID-19 outbreak situation In 2021, Thai economy encountered challenges from the third wave of COVID-19 pandemic outbreak, causing a drag on economic recovery after the implementation of strict containment measures in the areas with severe outbreak, totally accounting for 77% of national GDP. Private consumption got negative impacts from fragile labor market as well as the decline in labor incomes and consumer confidence, inserting greater pressure on domestic purchasing powers even with the government’s relief measures and stimulus packages. Likewise, private investment was negatively affected by temporary closure of construction camp and widespread pandemic outbreak across manufacturing sectors and provinces. However, merchandise exports have been the sole growth driver with the annual growth figure of 2021 in US dollar term being at 17%, registering the highest growth figure in 11 years. This is due to the recovery of Thailand’s major trading partners, particularly the United States, and the gradual resolution of supply disruption problem in the last quarter. Regarding tourism sector, it didn’t show a clear recovery path even though the outbreak situation, both domestic and abroad, had improved since the late third quarter with the easing of domestic containment measures and the Thailand kingdom’s border reopening on 1st November. For the last two months of the year, the number of foreign tourists entering Thailand was 320 thousand persons. However, the total number of tourists for 2021 remained at low level of only 430 thousand persons. With the economic growth outcome of the fourth quarter being at 1.9%, annual Thai economy of 2021 expanded by 1.6% after a contraction of 6.2% in 2020. Economic Outlook for 2022 Thai economy would continue to expand by 3.9% from all components but would remain below pre-pandemic level According to greater momentums of all economic components in the last quarter of 2021, ttb analytics thus projects Thai economy in 2022 to grow by 3.9% with the supports from domestic activities’ recovery, robust merchandise export rebound and a gradual improvement in tourism sector especially in the second half of the year. However, the Omicron outbreak starting in late 2021 would pose some negative impacts on Thai economic recovery especially in the first quarter of 2021. However, the impact is expected to be with less degree as compared to the last year’s pandemic outbreak. This is since the government has eased some restrictions such as limiting the areas in which outbreak containment measures have been implemented as well as resuming Test & GO kingdom entry scheme. With respect to domestic economy, private consumption is about to steadily recover with the continuous supports from government’s relief measures and economic stimulus packages throughout the first half of 2022, for which the budgets come from 500 billion budget bill, recently the approved spending amounting to 80% of total planned budget. 61 Form 56-1 One Report 2021
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