(Corrects spending at para 5 to 1 trillionbaht (not 1 million)

Kitiphong Thaichareon and Orathai Shriring

BANGKOK, (Reuters) – Thailand’s economy will slow this year because of the effects of the pandemic. However, it could grow by 5-6% in 2022 if no new outbreaks occur, the deputy prime minister stated on Wednesday.

The Southeast Asian nation’s most prolonged epidemic has eased, leading to a relaxing of restrictions and reopening https://www.reuters.com/business/aerospace-defense/bangkok-welcomes-first-tourists-quarantine-free-holiday-2021-11-01 to more foreign visitors to reboot the key tourism sector.

Supattanapong Ponmeechaow who oversees economic issues, said the country had moved on from its worst. Financial and fiscal stability are still sound.

He said that Thailand has achieved its 70% goal in vaccinating children by the end of this year. However, Thailand continues to sustain manufacturing for exports as a major driver of economic growth.

The economy will also get support from 600 billion baht ($18 billion) of investment pledges expected this year, and a government scheme to attract 1 million long-term foreigners https://www.reuters.com/article/idUSL4N2QG1BU over the next five years with spending of 1 trillion baht, he said.

Nearly 40 million tourists from abroad spent 1.91 trillion Baht ($57 billion) in 2019. According to the finance ministry, there will be just 180,000 international arrivals in 2019, with 100,000 expected for the fourth quarter.

A joint business group representing industry, commerce, and banking raised their 2021 outlook for economic growth to 0.5%-1.5%, from zero-to-1%.

Sanan Angubolkul was also the chairman of the Thai Chamber of Commerce. He had earlier forecast 600,000 foreign visitors in November and Dec.

(33.36 baht = $1)