BoT acknowledges economic impact of COVID-19

[rooster59]

BoT acknowledges economic impact of COVID-19

Praphorn Praphornkul

 

 

BANGKOK (NNT) - The Bank of Thailand (BoT) has acknowledged that while some economic recovery was seen during December 2020, the impact of the new wave of COVID-19 infection will likely be seen at the end of this month with the effects to encompass tourism and exports, while US economic stimulus could also have repercussions.

 

Director of the BoT Macroeconomic Policy Office, Pornpen Sodsrichai pointed out this week that private consumption has risen in line with a recovery in spending power fueled by state support, but acknowledged household spending power still remains fragile. Exports have contracted in spite of private businesses returning to growth on the back of improving demand and confidence, as has the tourism industry as travel restrictions continue.

 

The new wave of COVID-19 infections remains the most crucial factor affecting the economy’s trajectory but the BoT is also keeping an eye on economic stimulus in the United States and its continued rivalry with China, which has provided Thailand with an opportunity as a preferred trading partner. The central bank believes that if Thailand can maintain its trade balance with both the US and China, it will help to prop up its production and market chains.

 

-- © Copyright NNT 2021-01-31

 

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[ThailandRyan]

1 hour ago, rooster59 said:

the impact of the new wave of COVID-19 infection will likely be seen at the end of this month with the effects to encompass tourism and exports, while US economic stimulus could also have repercussions.

Is she saying that they are being given a US Stimulus package?, or is she saying the Stimulus the US is giving it's people will assist the Thai economy.  Hard to believe that there has been any increase in tourism or in exports with Covid keeping Thai tourism in check, and then the hig Thai Baht keeping exports in check as well.  My view is that the reason December showed some recovery was because of the Holidays, and spending of money folks had or even did not have and put onto the plastic cards that will be increasing household debt.  The economy as a whole is stuck in a rut and not moving very far except backwards with more unemployment, and a lack of Thai Government stimulus packages as they are unwilling to go into debt to bail out their own country.  Instead they are launching new plans to go to the moon, build a bridge across the bay, and other things that should be on hold.

[newnative]

4 hours ago, ThailandRyan said:

Is she saying that they are being given a US Stimulus package?, or is she saying the Stimulus the US is giving it's people will assist the Thai economy.  Hard to believe that there has been any increase in tourism or in exports with Covid keeping Thai tourism in check, and then the hig Thai Baht keeping exports in check as well.  My view is that the reason December showed some recovery was because of the Holidays, and spending of money folks had or even did not have and put onto the plastic cards that will be increasing household debt.  The economy as a whole is stuck in a rut and not moving very far except backwards with more unemployment, and a lack of Thai Government stimulus packages as they are unwilling to go into debt to bail out their own country.  Instead they are launching new plans to go to the moon, build a bridge across the bay, and other things that should be on hold.

     I guess she is expressing a need for me and other American expats here to rush out and spend that extra $1400 should it ever materialize.  Nice to be needed...

[Isaan sailor]

Instead of blaming Covid19 for economic problems, how about Bank of Thailand address the Baht which rises daily along with the Chinese Yuan?  Did they tie the two together?  Meanwhile the USD, Pound and Euro all get pounded down.

[geisha]

I suppose the only country that’s not doing too bad is China. 

[kevin612]

Print cash will lower the baht, provide money to the Thai people.  it is a win-win situation