Connect with us

Economics

Thai economy shrinks most in more than two decades

Thailand’s economy should contract between 8% to 12% this year given its reliance on exports and tourism and the strong baht, which gained more than 6% in the second quarter.

Olivier Languepin

Published

on

Thailand’s GDP shrank 12.2% from a year ago, the National Economic and Social Development Council said Monday, its biggest decline in more than 20 years since the country was hit by the Asian financial crisis in 1998.

The outlook for Thailand’s economy this year is the most dire in Asia given its reliance on exports and tourism, and worsened by the strong baht, which gained more than 6% in the the April-June quarter, the second-best performing currency in Asia tracked by Bloomberg.

The data reflect the fact that the economy was shut for part of the second quarter, and borders remain closed to most foreigners.

While Thailand has been successful in stemming the tide of COVID-19 infections over the last three months, the economic impact has been severe. The tourism sector, which makes up close to 15 percent of Thailand’s GDP, has been hit hard, with a near cessation of international tourist arrivals since March 2020.

The ban on international commercial flights will remain while the Covid-19 pandemic situation remains critical in many countries, the Civil Aviation Authority of Thailand (CAAT) said last week.

Thailand allows no ordinary tourist entry at the moment, while no travel bubble programmes with other countries have been implemented yet.

“We are concerned about the economy, especially employment, bad debts” and small and medium enterprises, said Thosaporn Sirisumphand, secretary general of the economic council.

The NESDC cut its full-year forecast to a 7.3%-7.8% contraction, from an earlier estimate of a 5%-6% fall.

Thailand’s GDP is forecast to contract 8-10% this year, before recovering to 4-5% growth in 2021. Real GDP is not expected to reach its pre-Covid level until 2023, according to the Thailand Development Research Institute (TDRI), a Bangkok-based independent think tank. 

But the Center for Economic and Business Forecasting (CEBF) of the University of the Thai Chamber of Commerce (UTCC) has predicted that the Thai GDP this year will shrink between 9.4 to 11.4 percent due to the COVID-19 pandemic.

The coronavirus outbreak has already cost the Thai economy Bt2.1 trillion, which could rise to Bt3 trillion if the economy does not recover in the second half of the year, said Thanawat Polvichai, rector at UTCC.

Anti-government protests, mainly by young people, are starting to gain momentum and add to uncertainty, as more than 10,000 people rallied in Bangkok on Sunday.

Comments

Economics

Developing Asia’s Economy to Contract 0.7% in 2020 (ADB)

Economies across developing Asia will contract this year for the first time since 1960, according to a report released by the Asian Development Bank (ADB) today.

Boris Sullivan

Published

on

The Asian Development Outlook (ADO) 2020 Update forecasts -0.7% gross domestic product (GDP) growth for developing Asia this year—marking its first negative economic growth since the early 1960s. 

(more…)

Continue Reading

Economics

Consumer confidence in August up for four straight months

The University of the Thai Chamber of Commerce (UTCC) reported on Wednesday the consumer confidence index rose to 51 in August from 50.1 in July, 49.2 in June, 48.2 in May and 47.2 in April.

National News Bureau of Thailand

Published

on

The University of the Thai Chamber of Commerce’s Center for Economic and Business Forecasting has reported that the country’s consumer confidence index in August 2020 increased for four consecutive months, thanks to the government’s various economic stimulus measures.

(more…)

Continue Reading

Economics

COVID-19 reduces Thai household income by 70 percent

The ongoing COVID-19 pandemic has already decreased Thailand’s monthly household income by 70 percent.

National News Bureau of Thailand

Published

on

Lillian SUWANRUMPHA / AFP

The Office of the Royal Society has organized a round-table discussion about the economic hurdles caused by the ongoing COVID-19 pandemic, which has already decreased Thailand’s monthly household income by 70 percent.

(more…)

Continue Reading

Cart

Most Viewed

Events Calendar

« September 2020 » loading...
M T W T F S S
31
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
1
2
3
4

Subscribe via Email

Enter your email address to subscribe and receive notifications of new posts by email.

Join 12,883 other subscribers

Latest

Trending