Connect with us


Thai economy shrinks, pandemic to blame



PHOTO: Thailand Public Relations Department

The Thai economy is shrinking. A lot. So much that it’s close to hitting as low as it did in the 1998 financial crisis. Some say the coronavirus pandemic is to blame.

For the second quarter, the Thai economy shrank by 12.2%, the National Economic Social Development Council says. That’s just a few decimal points away from a low in the financial crisis, according to the council’s secretary general Thosaporn Sirisumphand.

“It is the most severe contraction since the second quarter of the 1998 Asian financial crisis, when GDP had sunk by 12.5%.”

The Nation reports the coronavirus pandemic had a huge impact on the drop in GDP in Thailand as well as many countries around the world. They say China and Vietnam are the few that experienced growth.

The Thai economy is expected to shrink by 7.5% for the full year, but that’s if there’s not a second wave of the coronavirus, the Nation says. Sirisumphand says the economy has improved with the recent reopening of businesses.

While a second outbreak is a potential threat to the economy, Thailand’s domestic political protests and the trade war between the United States and China could also impact the Thai economy.

“Should the country face political turmoil, it would worsen the economic downturn.”

Siriumphand warns that many could lose their jobs if the economy does not improve. The Nation says the unemployment rate rose 1.95% in the second quarter with 745,000 people unemployed. Many are looking for jobs. Just earlier this week, thousands of job seekers crowded Bangkok hotel to file an application.

“Should the economy not get better, then 1.76 million workers would be laid off, but if the economy improves, they will be able to keep their jobs.”

SOURCE: Nation Thailand


Get more from The Thaiger

Join the conversation and have your say on Thailand news published on The Thaiger.

Thaiger Talk is our new Thaiger Community where you can join the discussion on everything happening in Thailand right now.

Please note that articles are not posted to the forum instantly and can take up to 20 min before being visible. Click for more information and the Thaiger Talk Guidelines.

Caitlin Ashworth is a writer from the United States who has lived in Thailand since 2018. She graduated from the University of South Florida St. Petersburg with a bachelor’s degree in journalism and media studies in 2016. She was a reporter for the Daily Hampshire Gazette In Massachusetts. She also interned at the Richmond Times-Dispatch in Virginia and Sarasota Herald-Tribune in Florida.

Follow Thaiger by email:

Malaysia10 hours ago

Malaysian beauty salon gets makeover as dentistry school

Thailand12 hours ago

Northern floods tragedy – Monks unable to help

Tourism12 hours ago

Xi’s Bangkok APEC trip to open tourist floodgates

Pattaya13 hours ago

Police to curb Pattaya Beach drinking after student gun fight

Phuket14 hours ago

9th and 10th monkeypox infections found in Phuket

Coronavirus (Covid-19)15 hours ago

Face masks still required on public transport, in cinemas

Join the conversation on the Thaiger Talk forums today!
Cannabis News15 hours ago

Pattaya man attacked at gunpoint for selling cannabis

Crime16 hours ago

Police seize 60 suspects in online ‘ghost guns’ sting

Thailand16 hours ago

Bangkok Secret Nightlife – Bangkok Red Light District Secret Museum

Coronation17 hours ago

King Charles III debuts on UK coins

Politics1 day ago

Vladimir Putin officially annexed four parts of Ukraine

Transport1 day ago

Phuket Airport officials pulled tourist from van, insisted they use airport taxi

Thailand1 day ago

Thailand’s strange laws – 10 strange laws in Thailand

Politics1 day ago

The long goodbye – Which way now for PM Prayut?

Pattaya1 day ago

Pattaya Police Chief cleared of vice slurs, back on duty

Thailand1 year ago

Morning Top Stories Thailand | Police to end protests, Human Trafficking | September 14

Thailand2 years ago

Thailand News Today | Thai Airways in rehab, All go for Songkran | March 4

Tourism2 years ago

Phuket’s nightlife. Yes, bars and clubs are still open | VIDEO

Phuket2 years ago

Thailand News Today | Covid passport talks, Thai Airways heads to court | March 2

Tourism2 years ago

Phuket Thai food treats you need to try | VIDEO

Thailand2 years ago

Thailand News Today | Bars, pubs and restaurants ‘sort of’ back to normal | Feb 23

Tourism2 years ago

In search of Cat & Dog Cafés in Phuket Town | VIDEO

Thailand2 years ago

Thailand News Today | Gambling crackdown, Seafood market to reopen, Vlogger challenge | Jan 21

Thailand2 years ago

Thailand News Today | Covid testing for visas, Business impact, Vaccine approval | January 19

Thailand2 years ago

Thailand News Today | Weekend Bangkok bombs, Thailand fires, Covid update | January 18

Thailand2 years ago

Thailand News Today | Stray car on runway, Indonesian quake, 300 baht tourist fee | January 15

Thailand2 years ago

Thailand News Today | Governor off respirator, sex-trafficking arrest, condo prices falling | January 14

Thailand2 years ago

Thailand News Today | Chinese vaccine, Thailand ‘drug hub’, Covid update | January 13

Thailand2 years ago

Thailand News Today | Bangkok may ease restrictions, Phuket bar curfew, Vaccine roll out | January 12

Thailand2 years ago

Thailand News Today | Covid latest, Cockfights closed down, Bryde’s Whale beached | January 11