Asia Regional Integration Center

Growth accelerated to 1.5% in 2021 as the country remained free from COVID-19. Capital expenditures almost doubled, offsetting low consumption—that led tax revenues to decline by a fifth. In 2022 and 2023, business travel and remittances are projected to return to pre-pandemic levels as international borders gradually open. GDP is forecast to grow by 3.0% in both years. The fiscal surplus narrowed from the equivalent of 8.7% of GDP in 2020 to 5.4% in 2021. As expenditures dropped by 13.0% and revenues fell similarly, the government expects a fiscal deficit equal to 9.7% of GDP in 2022, as the 27.6% growth in expenditures will outweigh the projected 10.6% rise in revenues.