Asia Regional Integration Center

GDP continued to grow by 2.4% in 2019, slightly higher than the 2.3% growth in 2018. Government spending on wages and subsidies reversed the country’s fiscal surplus—estimated at 27.2% of GDP—into an 8.0% deficit. Lower prices of food, beverages, and tobacco led to a 1.8% deflation in 2019, while the country’s current account surplus narrowed from roughly 13.4% of GDP to 7.6%. As the country does not rely heavily on tourism, the economy will be less affected by COVID-19 travel restrictions. However, the impact may slow construction on some projects. In addition, general elections slowed approval of the 2020 budget, which may drag down economic activity. GDP growth is estimated to decelerate to 1.6% in 2020, rising to 1.8% in 2021.