Thai central bank to cut growth forecast after second coronavirus wave

By Orathai Sriring and Satawasin Staporncharnchai

 

FILE PHOTO: The Bank of Thailand logo is seen in Bangkok, Thailand April 26, 2016. REUTERS/Jorge Silva

 

BANGKOK (Reuters) - Thailand's central bank said on Friday it might cut its growth forecast for this year in response to a recent coronavirus outbreak, although the impact on economic activity has been less than the first wave of infections.

 

The new spread, which has seen its case number almost triple since a month ago, could hit the country's gross domestic product (GDP) by 1.0-4.0%, depending on its severity and the effectiveness of containment measures, said Chayawadee Chai-Anant, Bank of Thailand (BOT) senior director.

 

The BOT on Dec. 23 lowered its 2021 GDP growth outlook to 3.2% from 3.6%, which Chayawadee said had taken into account some virus impact.

 

"But we may have to revise that down because we did not expect the spread would be this fast," she told a briefing.

 

If the current measures, which allow most economic activities, are maintained for two months and relaxed by June, it could impact GDP by 1.0-1.5%, she said.

 

But if the outbreak worsens and strict measures are imposed, GDP will be hit by 3.0-4.0%, she added.

 

Thailand has recorded just 11,450 coronavirus cases and 69 deaths so far. It is averaging about 232 new daily cases, having gone several months last year without community transmission.

 

The recent outbreak, which saw infections in 60 of Thailand's 77 provinces, could also impact more than 4.7 million workers, Chayawadee said.

 

The restrictions will likely derail the economy's nascent recovery, according to some analysts, who have lowered this year's growth outlook to below 3%.

 

While the outlook remains uncertain, tourism, a key growth driver, will gradually recover in the second half of this year, while exports should also grow as the economies of trading partners improve, the BOT said in a statement.

 

In 2020, Southeast Asia's second-largest economy may have contracted 6.6%, according to the BOT, the weakest in over two decades.

 

-- © Copyright Reuters 2021-01-15

 

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i think that they have been on the woopy weed again or the fortune tellers been at it again  with tourists gone exports down how are they going to achieve this  wishful thinking 

Perhaps if they cut interest rates—they wouldn’t have to cut growth rates.  That way, they wouldn’t have as much of those mysterious foreign inflows (risk on) that have devastated the economy, along with COVID-19.

Smoke and Mirrors! Its the only explanation.