Thai economy is expected to expand during post-Covid. A recovery is expected with the use of new effective vaccines, which will result in a strong increase in the international tourism and export industry from Thailand. It is also expected that the inbound tourism to gradually return to normal by the third quarter of 2021.
The majority of the tourists will be from China, while the other part will mostly come from Covid-free countries.
It is also anticipated that Thailand's exports will grow. The public sector remains the only key engine of the Thai economy. Public spending and investments will need to speed up next year to counter the negative impacts of the covid-19 pandemic . Oil prices, inflation and interest rates also remain at a low level. While most of the businesses are yet to recover to their pre-Covid levels, there are sections of business that have grown during the pandemic, i.e. delivery and packaging services, IT solutions, healthcare, hygiene products and insurances. This trend is anticipated to remain as a new standard and continue or probably also increase in post-covid period.
Relocation of production capacity from China to Asean, especially to Thailand and Vietnam continues. The automotive and electronics industries, for example, are relocating their production facilities outside of China to Thailand. Businesses that are related to public sector investments and activities will continue to grow next year as public spending expands.