5.3 per cent contraction seen for Thai economy 2020
The Thai economy is expected to sharply contract by 5.3 per cent this year as the Covid-19 pandemic continues to weigh on global financial markets, economy and people, says the Bank of Thailand.
The BOT’s Monetary Policy Committee forecast the Thai economy to contract 5.3 per cent this year before rebounding to a growth of 3 per cent next year, said Don Nakornthab, senior director at Bank of Thailand’s economic & policy department, on Wednesday (March 25).
The MPC voted to maintain benchmark rate at 0.75 per cent earlier on the same day.
The coronavirus outbreak has been impacting Thai tourism and exports to a large extent , he said.
Don said the number of tourist arrivals was expected to contract by 60 per cent this year while the economies of our trading partners would slow down or enter into recessiion if the Covid-19 pandemic persists for a prolonged period.
The virus fallout have been adversely affecting businesses and people worldwide.
Government stimulus packages, businesses and people's adaptations to the situation hold the key to the direction of the local economy, he added.
Before the Covid-19 outbreak, the Thai economy was already on a path of slow growth. GDP growth last year stood at a low 2.4 per cent, lagging behind many countries in the region.