BANGKOK – Thailand downgrades its economic growth forecast for this year today as it battles the worst Covid-19 wave, which has brought new record numbers of infections and deaths.
Last year, the kingdom suffered its worst full-year performance since the Asian financial crisis in 1997, with a 6.1% economic contraction.
The Office of the National Economic and Social Development Council (NESDC) had initially given a cool forecast for recovery during the first quarter, estimating the growth of 1.5% to 2.5% for the year.
But today, NESDC secretary-general Danucha Pichayanan announced that it had to revise that figure down to between 0.7% and 1.2%.
“This crisis caused by the pandemic is unlike the financial crises of 1997 and 2009, and our estimation is based on domestic causes,” he said during a press conference.
He added that the new forecast was depending on the hope that the pandemic’s curve will flatten after the third quarter, thus enabling a restrictions relaxation by October.
“But if the pandemic continues and relaxation cannot start in the fourth quarter, the growth could then be lower than 0.7%,” Danucha said.
Thailand’s GDP for the second quarter was up by 7.5% on the same period last year, the first sign of recovery since the pandemic began early last year.
The growth was most visible in agricultural, industrial and exports sectors, while the tourism sector, once Thailand’s cash cow, remained sluggish.
Since the start of the pandemic, Thailand has recorded 928,314 cases with 7,733 deaths, when the bulk of them was detected since April.
The country has seen more than 20,000 new cases reported daily for nearly a week, crowding its already hampered healthcare system and filling up its state-run quarantine facilities. – AFP, August 16, 2021
