Thai economy likely to lose over 12 billion USD due to lockdown extension

Illustrative image (Photo: AFP/VNA)

Bangkok (VNA) - The Thai Chamber of Commerce (TCC) estimates that extending the lockdown period and expanding the "dark red zone" to 29 out of 77 provinces nationwide will cost the economy about 300-400 billion baht (9.1-12.1 billion USD) due to the stagnation of economic activities.

Thailand’s Centre for COVID-19 Situation Administration (CCSA) said the Government has extended lockdown measures for two more weeks in high-risk areas and included 16 provinces to the “dark red zone” to control the surge in COVID-19 cases.

In the next two weeks, the curfew will start from 9pm to 4am the next day, as well as other tough measures will be implemented in Bangkok and 28 provinces, a CCSA representative said.

According to TCC President Sanan Angubolkul, losses from lockdown and control measures in 29 "dark red zone" provinces are estimated at 300-400 billion baht per month. As these provinces are business centres and locations of industrial zones.

President of the Federation of Thai Industries (FTI) Suphan Mongkolsuthree said that the "dark red zone" provinces account for 70-80 percent of the country's overall production capacity. The increase in preventative and control measures will further hamper economic activity.

Last week, Thailand's Ministry of Finance lowered its economic growth forecast for the third time this year from 2.3 percent to 1.3 percent for 2021, as the third wave of COVID-19 in the country has caused a spike in the number of new cases and daily deaths.

Thailand on August 2 recorded 17,970 new cases of COVID-19 and 178 deaths, bringing the total number of cases from the beginning of the pandemic to 604,421, and 5,168 fatalities./.