Europe lockdowns could shrink Thai economy another 0.5%: private sector
The private sector is worried that renewed lockdowns in Europe could see the Thai economy shrink by another 0.37 to 0.5 per cent in the fourth quarter, according to the Joint Standing Committee on Commerce, Industry and Banking on Wednesday.
Committee chairman Karin Sarasin said the lockdowns could affect Thai exports by restricting foreign consumers' activities but would not impact manufacturing.
However, the Thai economy would continue to recover in the fourth quarter provided there was no second wave of Covid-19 in Thailand and recent government stimulus measures began to take effect, he said.
The joint committee meeting found that the Thai economy in the third quarter benefited from the recovery of manufacturing overseas, while domestically businesses such as auto parts, computers and plastic pellets also bounced back.
The joint committee forecast that Thai economy this year will contract between 7 and 9 per cent, while export will shrink by 8-10 per cent.
This week the Thai National Shippers’ Council brightened its forecast for export contraction this year from 8-10 per cent to 7 per cent after seeing an improvement in global grade.
However, despite rising orders, the council is keeping a close watch for a possible second wave of Covid-19 infections in export destinations, especially the US and Europe.
Thai exports dropped 3.86 per cent year on year in September to US$19.621 billion, while exports in the first nine months of the year fell 7.33 per cent year on year to $172.996 billion.
