Connect with us

Economics

Thailand and Malaysia led the region in terms of government stimulus

Thailand’s government were proportionally the largest in the region, equivalent to 22% of GDP. This was closely followed by Malaysia, which offered support totalling 21% of GDP through its various packages.

Oxford Business Group

Published

on

People sit in long lines as they wait to file complaints for not yet receiving the 5,000 Thai baht (150 USD) financial assistance for those whose income is impacted by the COVID-19 coronavirus outbreak, as others (front) file their documents, in front of the Public Relations Department in Bangkok on May 7, 2020. (Photo by Lillian SUWANRUMPHA / AFP)

Asian countries’ levels of resilience to the pandemic varied in line with their respective levels of economic development.  

More developed economies with strong health care systems and financial reserves, such as Japan and South Korea, were naturally better prepared to manage the health and economic effects of the crisis.

Others with weaker infrastructure and lower average disposable incomes faced a more challenging proposition.

To take an example, while Myanmar has experienced strong economic growth in recent years – averaging 6.6% annually between 2010 and 2019, according to the IMF – and invested significantly in health care infrastructure, it still lags behind other economies in the region and was therefore vulnerable to any significant outbreak of the virus.

Institutional response

Aside from the medical crisis, governments and other key institutions in Asia responded to the subsequent economic fallout.

While all countries implemented some form of stimulus plan or state support package, these varied in scope and focus.

For example, stimulus measures released by Thailand’s government were proportionally the largest in the region, equivalent to 22% of GDP. This was closely followed by Malaysia, which offered support totalling 21% of GDP through its various packages.

These measures went far beyond most others in the region, with the fiscal stimulus offered by China (5%), Indonesia (4%), Vietnam (4%) and the Philippines (3%) being considerably lower.

Support funds were typically followed by central bank efforts to boost liquidity. Thailand, Malaysia, the Philippines and Indonesia all reduced their benchmark rates to record lows throughout 2020, at 0.5%, 1.75%, 2% and 3.75%, respectively.

With some of the industry’s most experienced analysts conducting on-the-ground research throughout the year, OBG provides its global readership with the business intelligence they need to stay ahead.

Comments

Economics

Thai economy to grow 4% in 2021 following 6.5% decline in 2020

The World Bank is now expecting the Thai economy to see 4% growth this year, and a 4.7% growth in 2022, despite current challenges from the new wave of COVID-19 infections.

Olivier Languepin

Published

on

Crowded downtown area in Bangkok

The World Bank now expects that the Thai economy to expand by 4 per cent in 2021, according to the latest World Bank Thailand Economic Monitor report “Restoring Incomes, Recovering Jobs” released on Wednesday (Jan 20).

(more…)
Continue Reading

Banking

BoT sees mild impact of new COVID-19 wave on the economy

The Bank of Thailand (BoT) does not see the new wave of COVID-19 infections as having as much of an impact on the economy as the first wave, as fewer businesses have had to be suspended.

National News Bureau of Thailand

Published

on

BANGKOK (NNT) – Despite a new and wider wave of COVID-19 infections in the country, the Bank of Thailand (BoT) has assessed that the economic impact of the situation will not be as severe as the first wave as the effects of the virus are not as pronounced, and public health preparations, including plans for vaccination, are in place.

(more…)
Continue Reading

Economics

COVID-19 brings first consumer confidence drop in 3 months

Consumer confidence in December 2020 was measured at 50.1 points, down from 52.4 the previous month. Economic confidence was also down to 43.5 from 45.6 points.

National News Bureau of Thailand

Published

on

BANGKOK (NNT) – Concerns linked to the new wave of COVID-19 infections has weighed on both daily life and business, resulting in the first drop in the Consumer Confidence Index in 3 months.

(more…)
Continue Reading

Latest

Most Viewed

Subscribe via Email

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

Join 13,609 other subscribers

Trending