Thailand’s growth outlook for 2022 was also lowered from 4.5 to 3.9 per cent, according to the ADB’s updated Asian Development Outlook 2021, released on Wednesday.
The ADB has lowered its 2021 economic growth outlook for all of developing Asia.
ADB forecast growth of 7.1 per cent among Asia’s developing nations this year. That compares with a projection of 7.3 per cent in April.
The growth outlook for 2022 is however raised to 5.4 from 5.3 per cent.
New Covid-19 variants, renewed local outbreaks, the reinstatement of various levels of restrictions and lockdowns, and slow and uneven vaccine rollouts are weighing down the region’s prospects, it said.
The report also said Thailand’s inflation rate would stay at 1.1 per cent this year and 1 per cent next year due to overall sluggish demand.
The ADB said the latest Covid-19 wave threatens to undermine Thailand’s economic recovery this year and the next.
However, strong growth in merchandise exports and an enabling policy environment could partly offset the large negative impact of Covid-19 on Thai growth.
“Even so, the risks to economic outlook are tilted downward on the current wave of the outbreak adding to concerns over the efficacy of vaccines and delays in the country’s vaccination programme,” the ADB report added. - The Nation Thailand/ANN