BANGKOK - The Bank of Thailand (BOT) has forecast that the country’s economy will contract by 5.3% this year due to the coronavirus (Covid-19) pandemic.
“The 5.3% contraction forecast does not take into account monetary and fiscal policy to support economic growth,” said BOT Senior Director for Economics and Policy Don Nakornthab as quoted by The Bangkok Post, Thursday (26/3).
“The government's emergency decree, especially to curtail people's movements, will help curtail new infections.”
In addition, BOT has slashed its forecast for private consumption this year from 3% growth to a 1.5% contraction as well as private investment from 3.4% growth to a 4.3% contraction. It also forecasts GDP growth of 3% in 2021.
The Thai central bank expects Covid-19 infections in the country to come under control in the second quarter of the year, although recovery in the tourism sector will take time. The country’s economy, Mr Nakornthab added, will benefit from controlled infection rate if people comply with government instructions related to migration and physical distancing. (MS)