Thai GDP drops nearly 2% in first quarter
The Thai economy’s slumped by nearly 2% year-on-year during Q1, 2020. In it’s full-year forecast, the National Economic and Social Development Council forecasts that the Thai GDP would drop 5-6% for the year. As a comparison, the economy tanked 7.6% during the 1997 financial crisis.
The Gross Domestic Product in Q1 dropped by 1.8%, compared to a rise of 1.5% in the last three months of 2019, according to their report.
The report says the agricultural sector decreased by 5.7%, but mainly due to this season’s drought. The non-agricultural sector decreased by 1.4%, in contrast to a rise of 2% in Q4, 2019. They say that was a result of the manufacturing sector falling by 2.7% and a reduction of the services sector by 1.1%.
The services sector reduction was mainly because of the decreased number of tourists, which has hit related sectors, particularly affecting transportation and storage, and accommodation and food service activities.
“Meanwhile, key services sectors such as wholesale and retail trade, vehicle and motorcycle repair, information and communications, and real estate showed decelerated growth”, according to Nation Thailand.
In March this year the Bank of Thailand forecast the Thai economy to shrink by 5.3% this year, the first contraction since the 2008 global financial crisis.