Foreign investors see Thai economy shrinking this year - survey

[snoop1130]

FILE PHOTO: People wearing face masks shop for street food in Chinatown amid the spread of the coronavirus disease (COVID-19) in Bangkok, Thailand, January 6, 2021. REUTERS/Athit Perawongmetha

 

BANGKOK(Reuters) - The Thai economy could contract this year due to the impact of its most severe coronavirus outbreak so far and stricter measures designed to contain it, a survey of Thailand-based foreign investors showed on Tuesday.

 

A foreign business confidence index in the second quarter dropped to 27.7 from 33.2 in the previous three months, with most foreign investors predicting the economy would not recover until the middle of 2022, the survey by the University of the Thai Chamber of Commerce showed.

 

Most predicted a second year of economic shrinkage if there were no additional stimulus measures, university president Thanavath Phonvichai told a briefing.

 

The economy shrank 6.1% in 2020 due to the wider effects of the pandemic, despite few local infections and deaths last year.

 

Faster and more vaccinations will be key to recovery as exports remained strong, said Stanley Kang, chairman of the Joint Foreign Chambers of Commerce in Thailand.

 

"There is an opportunity for exports in the third and fourth quarters from a weak baht>, but we have to prevent the outbreak at factories," he said.

 

The baht has depreciated by 10.4% against the dollar so far this year, becoming Asia's worst performing currency.

 

-- © Copyright Reuters 2021-08-10

 

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[mark131v]

Well I would have never seen that coming, what with a mismanaged pandemic and absolute imbeciles in charge, nope never would have guessed...

[Scrotobike]

Well yes ... and?

Is this news?

[ThailandRyan]

However, the good PM has assured us it's all under control and 70% of the country will be vaccinated by year end... 

[Neeranam]

3 hours ago, ThailandRyan said:

However, the good PM has assured us it's all under control and 70% of the country will be vaccinated by year end... 

Do you not belive him? looks under control to me, many getting vaccines. 

[Darkside Gray]

Well spotted, who would have thought?

[soalbundy]

15 hours ago, mark131v said:

Well I would have never seen that coming, what with a mismanaged pandemic and absolute imbeciles in charge, nope never would have guessed...

The report was written by 'We is experts'

[spidermike007]

I used my tarot cards, my 250 year old Romanian crystal ball, and tea leaves last night. I asked about the future of the Thai economy. I did not even try to take into account the near total closure of the tourism industry, which likely employs 5 million people or so, and used to account for 20% of the economy, or 3 trillion baht. I also did not consider the near shutdown of the entire airline industry and the airports. Same applies for taxis, bus services, mini vans companies, ferry operators, etc. And I also disregarded the slowdown in exports, and the massive withdrawal of foreign capital from Thailand. In addition, I did not consider the real estate sector. The developers, and the lack of buyers and renters, both commercial and residential. 

 

What did I come up with? The tea leaves indicated that foreigners have lost confidence in this administration, the finance ministry, the justice system, the fight against corruption, the ability for the nation to move forward, and the currency. 

 

The crystal ball said it would be a four to seven year recovery, with real unemployment remaining between 26 and 42% for the next three years, and potentially going down to 19% within five to six years. It also said the actual support base for the leaders had fallen to between 1 and 2%. Mostly army members. 

 

And the tarot cards. My oh my, those tarot cards. They said the economy would contract by 11% in 2021, and that was over 2020, which as already a disaster. They said the same for 2022. Might improve to a contraction of only 8%, vs. 2019. My tarot cards not read year on year, as they know how useless that info is, during a pandemic. They also said condo prices would drop by an average of 44% nationwide, over the next five years, and it would take at least that long for the economy to recover. When I asked how long the recovery would take, the five of pentacles came up. 

 

The Five of Pentacles is a card of financial loss and poverty. You have hit hard times, especially when it comes to your work, career, finances, and material possessions. You may have recently lost your job, your home, or your financial security. You no longer feel safe because it has all been stripped away from you in one blow. Your ego may also be bruised, especially since success often correlates to financial wealth; losing either can be a humbling blow to your self-esteem and sense of self-worth. The upside is that this is a Minor Arcana card with temporary effects (rather than a Major Arcana card which has a longer-term impact). This, too, shall pass.

 

 

 

 

[Isaan sailor]

16 hours ago, snoop1130 said:

The baht has depreciated by 10.4% against the dollar so far this year, becoming Asia's worst performing currency

Glass half empty, or half full?  I think the Baht one the best performing currencies in Asia—and I hope it performs even better moving forward.  Sink, Baht, sink.

[Sydebolle]

Make up your mind, as I just finished reading the following thread:

 

[Mavideol]

10 minutes ago, Sydebolle said:

Make up your mind, as I just finished reading the following thread:

 

land of contradictions and LO(B)S land Of Bull's Shxx   555

[natway09]

I just may have been able to predict this.

I presume these guys are fully employed to come up with this "stating the obvious"