Thai economy passed lowest point, to contract less than expected: officials

By Chayut Setboonsarng and Satawasin Staporncharnchai

 

FILE PHOTO: A view of the Port of Bangkok, Thailand, March 25, 2016. REUTERS/Athit Perawongmetha

 

BANGKOK (Reuters) - Thailand's economy has passed its lowest point and is expected to contract less than previously expected this year due to a recovery in consumption, senior officials said.

 

"We can say that our lowest point was in the second quarter," Danucha Pichayanan, head of the National Economic and Social Development Council, told business executives at a dinner talk on Wednesday.

 

A recovery in agricultural goods prices also helped consumption, he said.

 

Official third-quarter gross domestic product (GDP) data is due to be released on Nov. 16.

 

"GDP will be negative this year, but less so than expected due to a recovery in consumption," Finance Minister Arkhom Termpittayapaisith told reporters earlier. He said revenue was coming from exports while the country remained closed to tourism, adding that "foreign exchange policy should support exporters."

 

The finance ministry has forecast an economic contraction of 7.7% this year due to the impact of the coronavirus pandemic.

 

Meanwhile, the baht hit 30.19 per U.S. dollar earlier, a 10-month high.

 

Thailand has kept coronavirus infections low with 3,847 cases and 60 deaths, but its economy has taken a hit from a ban on foreign visitors since April.

 

The government predicts just 6.7 million foreign visitors this year after a record 39.8 million in 2019, whose spending made up about 11.4% of GDP, or 1.93 trillion baht ($63.6 billion).

 

Southeast Asia's second-largest economy contracted 12.2% in the second quarter year-on-year, the sharpest fall in 22 years, as the pandemic pummelled tourism and consumption.

 

Our fiscal position is strong but could face some challenges next year from taxpaying businesses, and so the ministry is planning to adjust its tax structure to increase collection and support targeted industries, Arkhom said.

 

Thai banks are in a strong position, with ample liquidity, central bank governor Sethaput Suthiwart-Narueput said.

 

"This crisis is more severe than previous ones, but there is stability. It will take a long time to solve and measures have to be precise and not cast a wide net," he said, highlighting unemployment brought on from the collapse of the tourism and mounting household debt.

($1 = 30.3600 baht)

 

(Additional reporting by Kitiphong Thaichareon, writing by Chayut Setboonsarng; Editing by Ed Davies and Toby Chopra)

 

-- © Copyright Reuters 2020-11-12

 

- Whatever you're going through, the Samaritans are here for you

- Follow Thaivisa on LINE for breaking COVID-19 updates

35 minutes ago, webfact said:

Thailand's economy has passed its lowest point and is expected to contract less than previously expected this year due to a recovery in consumption, senior officials said.

 

Thai senior officials are surely not known to be among the most honest, trustable and competent people, as everybody know.

 

How can these senior officials argue that the economy has already passed its lowest point, when other senior officials at the same time continue to ruin the economy day by day, more and more, in an unprecedented scale, as never seen before?

Yeah, keep the pink spectacles on and sing "La vie en rose..."

Do they forget (ignore) the impact of their plandemic mismanagement which is starting this month?

A High-Season 20/21 which will be ZERO!

NO Tourism at all!

While the people are on the very last brink of existence and making desperate debts to reopen their little restaurants, shops etc. still hoping for a miracle...

So, one does not need to be a rocket-engineer to know that Tourism represents about 20% of GDP!

Wait the fourth quarter and you will see... Contraction of 7.7%... Yeah, right..!

Edited November 12, 20205 yr by Pesche

They are talking about GDP being down less by less than one percent.  Does anyone else think these guys can ever be closer than plus or minus 10%?