The economy showed signs of a rebound in Q4 2021. However, the combined shocks of the ongoing Omicron
wave and the fallout of the Ukraine-Russia conflict on global energy prices, tourism and financial markets, will
further set back the recovery. The number of foreign tourists fell in January, due to a pause of the Test and Go
program amid rising COVID cases. The current account deficit widened as the goods trade surplus narrowed and
the services trade deficit remained large. The Thai baht appreciated in February as investors gained confidence
in Thai equity and bond markets, only to depreciate in March due to a global flight to safety as the Ukraine-Russia
conflict intensified. Surging global energy prices caused inflation to rise significantly to 5.3% but second-round
inflation pressures remained contained. The banking system remained resilient, despite deteriorated asset

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Source: World Bank