Connect with us

Economy

Thai GDP drops nearly 2% in first quarter

The Thaiger

Published 

 on 

Thai GDP drops nearly 2% in first quarter | The Thaiger
FILE PHOTO: The ASEAN Post
  • follow us in feedly

The Thai economy’s slumped by nearly 2% year-on-year during Q1, 2020. In it’s full-year forecast, the National Economic and Social Development Council forecasts that the Thai GDP would drop 5-6% for the year. As a comparison, the economy tanked 7.6% during the 1997 financial crisis.

The Gross Domestic Product in Q1 dropped by 1.8%, compared to a rise of 1.5% in the last three months of 2019, according to their report.

The report says the agricultural sector decreased by 5.7%, but mainly due to this season’s drought. The non-agricultural sector decreased by 1.4%, in contrast to a rise of 2% in Q4, 2019. They say that was a result of the manufacturing sector falling by 2.7% and a reduction of the services sector by 1.1%.

The services sector reduction was mainly because of the decreased number of tourists, which has hit related sectors, particularly affecting transportation and storage, and accommodation and food service activities.

“Meanwhile, key services sectors such as wholesale and retail trade, vehicle and motorcycle repair, information and communications, and real estate showed decelerated growth”, according to Nation Thailand.

In March this year the Bank of Thailand forecast the Thai economy to shrink by 5.3% this year, the first contraction since the 2008 global financial crisis.

Thai GDP drops nearly 2% in first quarter | News by The Thaiger

SOURCE: Nation Thailand

Keep in contact with The Thaiger by following our Facebook page.

Economy

Thailand’s Central Bank will act to restrain soaring baht

Maya Taylor

Published

on

Thailand’s Central Bank will act to restrain soaring baht | The Thaiger
PHOTO: Thailand Business News

The rapidly strengthening Thai baht is proving a worry for Thailand’s Central Bank, which has said it’s ready to act to limit its rise, given the already damaged economy. The baht’s climb, strengthening nearly 2% against the dollar in the past month alone, makes it one of the highest climbing currencies in Asia.

Its recent rise is being attributed to the country’s seemingly successful containment of the Covid-19 virus, with restrictions gradually lifting and life being breathed back into the battered economy. The Central Bank is concerned that any excessive strengthening of the baht may have an adverse effect on the country’s fragile economy, especially exports, saying it’s ready to act to prevent this.

Thailand’s economy has been badly bruised by the Covid-19 pandemic, given that the country relies so heavily on tourism and trade, two sectors that have been devastated worldwide. Financial experts predict the economy will contract by as much as 6% this year and are anxious not to have a strong currency impeding Thailand’s competitiveness on the global stage.

However, the baht’s gains are limited by its 100 day moving average, with the Australia and New Zealand Banking Group saying it’s likely to weaken to 33.50 against the US $ by the middle of this month.

SOURCE: Chiang Rai Times

Thailand's Central Bank will act to restrain soaring baht | News by The Thaiger

xe.com (9am Tuesday, Thai Time)

Keep in contact with The Thaiger by following our Facebook page.
Continue Reading

Politics

Opposition criticises Government for unnecessary borrowing

Maya Taylor

Published

on

Opposition criticises Government for unnecessary borrowing | The Thaiger
PHOTO: Thai opposition chief whip Suthin Klangsaeng - Thai PBS World

The Pheu Thai opposition party is calling on the government to look to existing funds first before attempting to borrow a trillion baht from as-yet-unnamed sources. Opposition chief whip Suthin Klangsaeng was participating in the last day of the debate on three government decrees concerning the country’s finances.

A Thai PBS World report says the government is under fire for still not disclosing how it plans to borrow one trillion baht. Opposition parties say the public should be kept informed about such decisions, given that they will be paying the price for such significant borrowing for a long time into the future. Meanwhile the Thai PM Prayut Chan-o-cha has asked the Thai public to trust him and his government to acquire and handle the money with the interests of the Thai people at heart.

The opposition’s Suthin points to neighbouring countries such as Cambodia, Laos and Vietnam as examples of nations that have not had to resort to borrowing huge amounts of money in the wake of the Covid-19 pandemic. He acknowledges that Thai people need help as a result of the significant blow to the country’s economy but insists funds should be allocated from the government’s existing reserves. He says with some reshuffling of existing spending plans, the government could potentially reduce the amount of money it needs to borrow by as much as 15%.

Suthin also questions the government’s motivation in borrowing the money, accusing it of wanting to inject cash into the economy to drive spending, as opposed to compensating the small to medium businesses that have been so severely impacted by the impacts of the Covid-19 lockdowns.

SOURCE: Thai PBS World

Keep in contact with The Thaiger by following our Facebook page.
Continue Reading

Coronavirus (Covid-19)

Phuket officially reopens Monday, but with restrictions

Jack Burton

Published

on

Phuket officially reopens Monday, but with restrictions | The Thaiger
PHOTO: hotels.com

Phuket is scheduled to reopen to outsiders on Monday, to coincide with the start of Phase 3 of the easing of Emergency Decree restrictions enacted to fight the spread of Covid-19. It will also be a pleasant respite for the islanders who have been cooped up on the island since the last week of March.

Phuket’s outgoing governor says his administration has sought approval from the Civil Aviation Authority of Thailand to reopen Phuket International Airport to domestic flights, and will resume marine services at 24 of the island’s piers from Monday as well.

Permission to reopen the airport has not been given at this time.

Sarasin Bridge, Phuket’s only land connection to the mainland, will also be fully reopened for access to and from the island. Since the start of May there has been restricted access across the bridge where some 50,000 people registered to depart the island.

Some restrictions will remain in force: visitors to Phuket from Bangkok, Nonthaburi, Narathiwat and provinces where new infections have been reported in the past 28 days, will be required to enter 14 day home quarantine, unless the they plan to remain in Phuket for fewer than 3 days.

The provincial prison will also reopen for visits from June 8.

SOURCE: Thai PBS World

Keep in contact with The Thaiger by following our Facebook page.
Continue Reading

Trending