The Bank of Thailand has said the outbreak could shave as much as two percentage points off this year’s GDP if current measures fail to quell it and the pandemic endures for the rest of the year.
BANGKOK: Thailand will likely be the worst economic performer in South-East Asia this year, with economists continuing to slash the country’s growth forecast amid surging Covid-19 infections, mounting political tensions and fading hopes for a tourism revival.
The Finance Ministry yesterday cut its 2021 gross domestic product (GDP) forecast to 1.3% growth, from the 2.3% it expected in April. With new Covid infections and deaths continually breaking records since the latest surge began in April, some economists are flagging the possibility of a technical recession in the second half of the year – or even a second straight annual contraction, something the country hasn’t seen since the Asian Financial Crisis more than two decades ago.
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