Thursday, August 06, 2020

GDP’s minus 1.8% result better than expected: CIMB Research

May 18. 2020
Amonthep Chawla
Amonthep Chawla
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Thailand’s gross domestic product (GDP) in the first quarter was minus 1.8 per cent compared to the same period last year, which was better than the minus 2.6 per cent expected, said CIMB Research Office head Amonthep Chawla.

The GDP was announced earlier today (May 18) by the Office of the National Economic and Social Development Council. It reflected the fact that consumption in the first quarter was not in a very bad state and could actually stabilise purchasing power, he said.

Moreover, the economy was supported by certain exports, which were not affected by Covid-19, he said. But he added that the economy needs to be monitored continually, especially in private investment, which has been contracting.

“Production, labour wages and overall exports have witnessed a reduction. The economy might contract by 10 per cent in the second quarter,” he forecast.

CIMB Research estimated total GDP in 2020 would be minus 6.4 per cent or lower, depending on financial injection by the government.

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