“Protests could affect the economy” – Bank of Thailand

The ongoing political protests could have a negative impact on Thailand’s already crippled economy by weakening domestic consumption and tourism even more, according to the Bank of Thailand. The bank’s newly appointed governor Settaput Suthiwart-Narueput, who started this month, says they need to keep a close watch on the situation.

“Basically, the political factor is one of the uncertainties… It could affect the economy, particularly consumer confidence and tourism. The central bank has been monitoring the situation closely especially how all the parties concerned handle the protests.”

The halt of foreign tourist arrivals over the past 7 months have heavily impacted the economy. Thailand lost 1.6 trillion baht, or 10% of the GDP. Around 40 million foreign tourists visited Thailand last year while this year is only expected to have a total of 6.7 million. The bank’s governor says it’s going to take some time for the economy to recover.

“It will take at least 2 years for the economy to return to pre-pandemic levels… From now on, the economy is likely to see a continuous contraction on a quarterly basis. It is expected to begin to show a positive growth rate in the second rate in the second quarter of 2021 and be back to normal growth in the third quarter of 2022.”

President of the Tourism Council of Thailand Chairat Tirrattanajarasporn also says the continuing pro-democracy protests could negatively impact the tourism industry and is urging government officials to engage in dialogue with the protesters. He also says that people tend to save their money during protest movements rather than spending it on trips.

Those interested in travelling to Thailand on the Special Tourist Visa are not concerned with the political climate and ongoing protests, according to Tourism Authority of Thailand governor Yuthasak Supasorn.

“It is too early to assess the impact on tourism as mass gatherings have occurred recently and there has been no violence.”

While monitoring the protests and the potential effect they have on the economy, the governor says the Bank of Thailand will also tackle the debt crisis. Debt relief measures, put in place by the bank to aid businesses battered by the pandemic, are lifting this month. The bank is now working on debt solutions.

SOURCE: Bangkok Post

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