Thailand, like many other nations, faced the economic ravages of the COVID-19 pandemic in the third quarter of 2021. However, the Land of Smiles has shown resilience and adaptability. According to the World Bank’s latest Thailand Economic Monitor titled “Living with COVID in a Digital World,” the country’s economic activity is set to rebound, with a projected growth rate of 1.0 percent in the current year. This recovery, driven by vaccination efforts and a resurgence in tourism, lays the groundwork for Thailand’s resurgence. More intriguingly, digital technology is positioned as a pivotal driver in steering the nation towards sustainable growth and competitiveness.
Rebuilding the Economy: A Post-Pandemic Promise
The pandemic’s impact on Thailand’s economy was severe, but the nation has shown remarkable resilience. With progress on vaccination campaigns and a cautious return of tourists, the economy is on track to regain its pre-pandemic vitality by the end of 2022. This resurgence is expected to gain momentum, with growth projected to reach 3.9 percent in 2022 and 4.3 percent in 2023, predominantly driven by a revival in the service sector. The nation’s ongoing vaccination campaign, averaging around 750,000 doses administered daily, coupled with effective containment measures, is rekindling consumer confidence and international tourist interest.
Navigating the Road to Recovery
Vaccinations and policies that protect the population remain pivotal for Thailand’s economic revival. The report underscores that a concerted effort in vaccine distribution is imperative to return the economy to its pre-COVID output levels. The fourth quarter of 2021 is expected to see a boost in economic activity, driven by domestic travel and increased mobility. However, the pace of recovery is contingent upon the return of foreign tourists and the resurgence of domestic consumption.
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Digital Technologies: Catalysts for Inclusive Growth
The pandemic’s socioeconomic effects have been profound, with vulnerable groups disproportionately affected. Thailand’s poverty rate, estimated at 6.4 percent in 2021, has held steady, but an estimated 160,000 people have fallen into poverty since the pandemic’s onset in 2020. The crisis has caused widespread job losses and reduced working hours or pay for many. Against this backdrop, the report emphasizes the role of digital-led development in mitigating these impacts and ensuring inclusive growth.
Digital Transformation Accelerated
The pandemic catalyzed the adoption of digital technologies in Thailand. In response to extended mobility restrictions, individuals and businesses embraced digital solutions to keep operations running. The report highlights that 30 percent of all digital service consumers in Thailand were newcomers since the pandemic’s onset in March 2020. Furthermore, internet usage among the population soared, reaching 90 percent, the second-highest rate in the region after Singapore.
A Digital Agenda for the Future
While Thailand has made strides in advancing its digital agenda, there is still much to be done to fully capitalize on the potential of digital technologies. The report’s recommendations underscore the need for the government to foster the development of digital services and accelerate the digitalization of businesses. This includes promoting competition, incentivizing interoperability in digital markets, bolstering digital and complementary skills, and enhancing access to innovation finance. Embracing these strategies can help Thailand not only recover but thrive in a post-pandemic world driven by digital technology.
