Deputy PM says 2 years until Thailand’s economy is back to normal

It’s going to be another 2 years until Thailand’s economy is back on track, according to Deputy PM Supattanapong Punmeechaow. At least that’s the amount of time he expects it will take to get the economy back to “normal levels” from before the coronavirus pandemic.

The coronavirus crisis crippled economies across the globe. The Covid-19 pandemic is already the worst global crisis since World War II, according to a report by the UN. Thailand’s tourism-dependant economy has been struggling since the country shut it’s doors to international travel. Krungthai Bank also predicts it will take about 2 to 3 years for Thailand’s economy to recover and the Finance Ministry predicts Thailand’s economy will contract by a record of 8.5% this year.

Almost 800 billion baht has gone into supporting the economy, Supattanapong says, adding that the government plans to do more stimulus perks to help boost the economy. The government is working on a 1.9 trillion baht response package with a 1 trillion baht borrowing plan.

Supattanapong’s guesses are based on the pandemic situation not getting any worse, whilst the world’s Covid cases, in many part of the world, including many of Thailand’s feeder markets, are suffering a new spike in cases. His assumptions would also have to include an immediate return to high profit of the country’s tourism industry – not likely to happen any time soon.

“I think the economy should get back to normal levels within two years… But if we can manage it very well, we may see that late next year.”

While Thailand’s economy as a whole might take just 2 years to get back to normal, the country’s tourism revenue is expected to take even longer. Krungthai COMPASS Research Centre predicts it will be at least 3 to 4 years until tourism revenue is back to normal. Thailand’s tourism revenue is expected to shrink by 70% by the end of this year, making only 9.1 billion baht compared to the 3.02 trillion baht tourism brought in last year.

SOURCE: Bangkok Post

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