Thailand’s economy to shrink by 5.3 percent in 2020: BoT

Suvarnabhumi airport remains a ghost town on March 25 (Photo: www.bangkokpost.com)

Bangkok (VNA) – Thailand’s economy is projected to reduce by 5.3 percent in 2020 due to impact of the COVID-19, said the Bank of Thailand (BoT) on March 25.

Senior Director for economics and policy of the BoT Don Nakornthab said the pandemic has been the major factor hurting economies worldwide and taken a heavy toll on Thailand’s tourism and exports in the year.

The BoT previously predicted economic growth of 2.8 percent this year.

The 5.3 percent contraction forecast, the first since the 2008 global financial crisis, does not take into account monetary and fiscal policy to support economic growth, Don said.

The BoT forecasts gross domestic product to grow by 3 percent, he added.

The public sector is the only engine available to support the economy, he said. The central bank maintained its projection for government consumption growth at 2.6 percent this year, while cutting its public investment growth view from 6.3 percent to 5.8 percent.

Based on data from the Public Health Ministry, the central bank expects the COVID-19 outbreak in Thailand to come under control in the second quarter, around April, but a turnaround for tourism will take time.

If Thai people cooperate with government measures, the COVID-19 infection rate will be controlled and the economy benefit eventually, Don said.

Thai Prime Minister Prayut Chan-o-cha on March 25 said that Thailand will be under an emergency decree from March 26 until the end of April to deal with the COVID-19 outbreak./.