World Bank projects Thai economy to shrink 5% this year

Birgit Hansl, the World Bank Country Manager for Thailand.
Birgit Hansl, the World Bank Country Manager for Thailand.

The World Bank projected Thai economy to shrink by at least five per cent this year and an estimated 8.3 million workers could lose their jobs or income.

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Birgit Hansl, the World Bank Country Manager for Thailand disclosed the World Bank report on Thai economy, saying due to the impacts from the Covid-19 pandemic, it downgraded the economic forecast for Thailand in 2020 to a contraction of 5% from its earlier projection of 2.9 % expansion last year.

Thai GDP is forecasted to grow 4.1% in 2021 and 3.6 % in 2022, it said.

The coronavirus lockdown led to layoffs and unemployment despite the government issued relief measures for affected individuals and SME businesses.

Thai economy has been affected by the world economic downturn. Contraction in world trade has an impact on Thai exports and the manufacturing sector particularly electronic and auto parts.

Travel restrictions to control the spread of the disease have affected service sectors and retailers, which could be seen in a 12 % drop of sales in the first quarter of this year.

An estimated 8.3 million workers will likely lose their jobs or income because of the Covid-19 crisis, particularly in tourism. The impact on household welfare is also likely to be severe. (TNA)