Asia Regional Integration Center

With travel and mobility restrictions stifling the economy, GDP shrank by 1.2% in fiscal year 2021 (FY2021, ended 30 September 2021). Despite the challenges in getting people vaccinated, $75 million in government stimulus packages helped reduce the economic contraction by an estimated 1.9 percentage points. As fuel prices increased and supply chains disrupted, inflation grew to 2.0% in FY2021. Lackluster tourism receipts shrank. The current account surplus fell to 0.5% of GDP as a result of the drop in tourism, while the fiscal surplus narrowed to 6.3% of GDP due to COVID-19 stimulus. In FY2022, GDP is forecast to bounce back, growing by 2.2%, assuming that travel restrictions ease by mid-year and the hospitality and transport sectors normalize.