The Bank of Thailand (BoT) (Photo: https://www.thailand-business-news.com/) Bangkok (VNA) – Thailand’s financial system has become more vulnerable dueto the more-than-expected contraction of the country’s economic outlook due toimpacts caused by the COVID-19 pandemic, according to the Bank of Thailand(BoT).
At a meeting on July 8, the BoT assessed that the Thai economy will contract by 8.1 percent in 2020 but would expand by 5.0percent in 2021 in tandem with a gradual improvement in both domestic andexternal demand.
The BOT’s monetary policy committee deemed it important toprepare financial measures to continuously alleviate impacts on households andbusinesses, especially after the phase-outs of the batch of financial andcredit measures.
According to the BoT, fiscal and creditmeasures, monetary support policies and efforts to accelerate the debtrestructuring process still have a key role in supporting Thailand's economicrecovery.
Thebank said Thailand did not face deflation risks, although its inflation rate isexpected to be negative 1.7 percent this year.
Thailand's economy is said to fall into recession after its GDP fell by 1.8percent in the first quarter of 2020 - the sharpest decline since the fourthquarter of 2011.
The Asian Development Bank (ADB) has forecasted that Thailand's economy willfall by 6.5 percent this year, the sharpest decline among members of theAssociation of Southeast Asian Nations (ASEAN)./.
VNA
