News

Please try another search

Economy5 hours ago (Apr 25, 2021 05:15AM ET)

2/2
© Reuters. FILE PHOTO: Thai baht notes are seen at a Kasikornbank in Bangkok

2/2

By Orathai Sriring and Satawasin Staporncharnchai

BANGKOK (Reuters) – Thailand’s central bank is likely to slash its economic growth outlook for this year and next year as the country struggles with a rapidly spreading third wave of COVID-19 infections.

The new outbreak, driven in part by the highly transmissible B.1.1.7 variant, has caused over 26,000 cases and 46 deaths in just 25 days, dealing a blow to the tourism-reliant nation’s efforts to reopen to foreign visitors.

Growth projections made in March had assumed that Thailand would be able to gradually reopen to vaccinated foreign tourists without requiring quarantine measures in the fourth quarter, senior central bank director Sakkapop Panyanukul told the Longtunman Youtube Channel late on Saturday.

“Given the current outbreak and vaccine efficacy, I must say that assumption is difficult,” he said, adding that forecasts for 3% GDP growth this year and 4.7% next year will likely “have to be reduced quite a lot”.

The economy could take six quarters to return to pre-pandemic levels and would be helped by improved exports, he said.

But the central bank’s forecasts for 3 million foreign tourists this year and 20 million next year will be difficult to meet, Sakkapop said, adding that it may take four to five years before Thailand would see a return to pre-pandemic levels of 40 million foreign tourists a year.

The sector accounts for 11% of GDP and employs over 10 million people.

The BOT will keep financial conditions accommodative to support the economy, Sakkapop said, adding that for now there was “no need to use unconventional measures”.

The BOT has kept its policy rate at a record low of 0.50% since mid-2020 and will next review policy on May 5. Most analysts see no policy change in the near future.

Related Articles

Tunisia has asked IMF for finance programme -letter
By Reuters – Apr 25, 2021

TUNIS (Reuters) – Tunisia has asked the International Monetary Fund for a new financing programme, an IMF letter seen by Reuters shows, and is preparing to start talks with the…

If Joe Biden is America’s Robin Hood, this is his merry band
By Reuters – Apr 25, 2021
7

By Trevor Hunnicutt WASHINGTON (Reuters) – Bolstered by popular support, U.S. President Joe Biden plans to take from the rich to give to the poor, aided by advisers keen to…

UK’s Johnson paid for apartment refurbishment himself, minister says
By Reuters – Apr 25, 2021

LONDON (Reuters) – British Prime Minister Boris Johnson personally covered the cost of refurbishing his Downing Street flat, a minister said, seeking to quash claims by Johnson’s…

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.