Asia Regional Integration Center

GDP growth fell from 4.3% in fiscal year 2019 (FY2019, ending 30 June) to 0.9% in FY2020 due to stringent containment measures against COVID-19. Growth in the hard-hit services sector declined to 3.7% from 10.8% in FY2019, while international tourist arrivals fell by 35.0% and tourism revenue by 33.9%. On the demand side, fixed investment declined by 11.7% on weaker public and private investment. In response, government stimulus drove expenditures up from 28.9% to 32.0% of GDP. Monetary policy was also eased, leading to a 19.3% growth in broad money. The economy is expected to contract by 3.4% in FY2021 from the effects of prolonged lockdowns, migrant labor shortages, and reduced domestic demand. Given the successful widespread vaccination program and a return to economic activity, GDP is expected to rise by 3.7% in FY2022.