FRIDAY, March 29, 2024
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Economic council sees effects of Covid-19 outbreak easing in second quarter

Economic council sees effects of Covid-19 outbreak easing in second quarter

The gradual improvement in the global economy and expansion of domestic demand are among four supporting factors for the Thai economy despite negative factors, the Office of the National Economic and Social Development Council (NESDC) said. The economic drive from the government’s measures and last year’s economic low-extension are the other two factors.

NESDC explained that the pressure from international issues such as the US-China trade war a “no-deal Brexit” had eased.
The NESDC predicted that the impact from the Covid-19 on China and other countries’ economies would end in May, and economic pressure would start to reduce in the second quarter of 2020.
Meanwhile, domestic demand has grown at a pleasant rate in household spending and private investment, the NESDC said. The extended demand was partly boosted from a relocation of production bases by entrepreneurs to avoid trade protection measures. Besides, the relaxation of some loan to value measures was included.
Third, the government this time has issued several measures to drive Thailand’s economy, such as caring for low-income people or financial aid to ease the impact on the tourism sector.
Finally, the NESDC said that the low economic expansion in 2019, especially the last quarter, would trigger the “low base effect” and support expansion in the fourth quarter of 2020 to be higher than the normal rate.
The NESDC believed that these four factors would help improve Thailand’s economy this year, if the Covid-19 outbreak stopped in the second quarter. “The economy would recover in V shape,” the NESDC added.

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