BANGKOK (Reuters) – Thailand’s economy is forecast to grow 1% this year, down from the 2.2% projected in July, hit by a spike in COVID-19 cases and a delayed reopening to visitors, the World Bank said on Tuesday, as the country fights its biggest virus outbreak to date.

The second largest economy in Southeast Asia contracted 6.1% last fiscal year. This was its worst slump for more than 20 years, and the devastating effects of the pandemic had a major impact on the tourism industry.

Kiatipong Ariyapruchya is a senior World Bank economist from Thailand. He said that the economy should return to pre-pandemic levels in 2023.

According to him, the recovery to pre-COVID levels in 2022 will take a year longer than anticipated in 2022. He also said that this was based upon an assumption that Thailand would achieve 70% vaccination rates within 2022.

According to Kiatipong, Thailand will receive 160,000 foreign visitors this year after it has recorded 40 million tourists. This is a decrease from the 600,000. arrivals expected in July.

According to Kiatipong, the estimated number of tourist arrivals in 2019 is at 1.7million. The economy will grow 3.6%.

Kiatipong explained that exports and fiscal support had been a major source of assistance, and the World Bank supported lifting the public debt ceiling by the government to boost the economy.

The 2021 World Bank economic outlook compares with the growth of 1.3% forecasted by the finance minister and 0.7% projected by the central bank.