Thailand’s economy to shrink 5-6 % in 2020

NESDB Secretary General Tossaporn Sirisamphan.
NESDB Secretary General Tossaporn Sirisamphan.

Thailand’s economy contracted 1.8 percent in the first quarter and is projected to shrink 5-6 percent this year, says the National Economic and Social Development Board (NESDB).

NESDB Secretary General Tossaporn Sirisamphan said that the quarterly contraction was the first since 2014 and the GDP would further drop in the second quarter due to the coronavirus pandemic.

The NESDB also projected country’s total exports to decrease by 8 percent.

“These projections are based on the assumptions that the virus is contained by the second quarter and the economic and tourism activities return to normal in the latter half of the year”, said Tossaporn.

Commenting on the government’s plan to acquire 1 trillion- baht worth of loan, the NESDB chief said that the injection would not significantly stimulate the GDP.

Tossaporn also cited the US-China trade war and the drought disaster as main affecting factors.

Due to the effects of the COVID-19 virus, the tourism industry could lose at least 150 billion baht in revenue, the NESDB said in a report released earlier.(TNA)