Growth Expected To Remain Robust
What’s going on here?
The economy is expected to remain buoyant this year, underpinned by strong domestic spending on the back of the reopening of the economy and increased tourist arrivals.
What does this mean?
According to the Statistics Department, the real GDP is anticipated to grow 5.1% year-on-year (y-o-y) in 2022, while some economists project the GDP growth to surpass 6% y-o-y for 2022 before moderating in 2023. The leading index (LI) for July this year signalled optimistic economic performance in the coming months. In the same month, the number of employed persons grew 4.5% while the industrial production index (IPI) was up 12.5% y-o-y. The economy will be supported by continued growth in domestic spending and business activities to counter the potential impact of external demand slowdown.
Why should I care?
The newly released Economic Outlook report by the Ministry of Finance laid out a similar projection where the ministry expected robust growth of 6.5%-7% in 2022 and slowing down to 4%-5% in 2023 against the backdrop of softening world economic growth and trade activities.
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