BOT predicts 5.3% contraction in Thai economy for 2020
Even the Thai economy, which was still maintaining respectable growth before January, is now spluttering under the siege of the Covid-19 virus.
Now the Bank of Thailand has crunched some numbers and believes the Thai economy will sharply contract by 5.3% this year as the virus continues to weigh on global financial markets, the local economy and people. GDP growth for 2019 stood at a low 2.4%.
The BOT Monetary Policy Committee speculates that the Thai economy will contract 5.3% for 2020 before hopefully rebounding with 3% growth next year.
Don Nakornthab, senior director at Bank of Thailand’s economic & policy department, says the Banks’s Monetary Policy Committee has voted to maintain benchmark rate at 0.75%.
“The coronavirus outbreak has been impacting Thai tourism and exports to a large extent. The number of tourist arrivals was expected to contract by 60% this year while the economies of our trading partners would slow down or enter into recession if the Covid-19 pandemic persists for a prolonged period.”
“Government stimulus packages, businesses and people’s adaptations to the situation hold the key to the direction of the local economy.”