Thailand
Thailand: Bubble and seal step to hit economic activities
The government’s bubble and seal measure for one month to control Covid-19 infections among workers is likely to affect economic activities, says an executive at the Bank of Thailand (BoT).
The central bank has been monitoring the economic situation after the government announced stricter bubble and seal measures on Monday to control new infectiion cases.
In the event of higher new infections and the situation becoming prolonged, it is possible that the central bank will review the country’s 2021 economic assessment, in line with the actual situation, said Chayawadee Chai-Anant, the BoT’s senior director of the economic and policy department.
On Monday, the government announced new measures, which will be implemented for 30 days from Monday, including a prohibition on dining-in at restaurants in Bangkok and five surrounding provinces of Nonthaburi, Pathum Thani, Samut Prakan, Samut Sakhon and Nakhon Pathom.
Shopping malls in Bangkok and the five provinces must be closed by 9pm, and parties or celebrations, or activities involving a gathering of more than 20 people are banned for the same duration.
Moreover, the government announced the shutting down of six construction sites and workers’ camps, which will be sealed off to contain clusters.
The central bank yesterday reported economic and monetary conditions for May that made the impact from the third wave of Covid-19 on the economy become more apparent.
Indicators of private consumption and private investment continued to decline from the previous month. In May, private consumption declined 3.1% on a month-on-month basis, while private investment dropped 2.3%.
After seasonal adjustment, domestic consumption continued to decline from the previous month in all spending categories due to the third wave of the outbreak and strict containment measures.
As a result, economic activities, household income and consumer confidence deteriorated, in spite of government measures, which partially supported household purchasing power.
Ms Chayawadee said the tourism sector has not recovered as international travel restrictions remained. In May, foreign tourist arrivals were 6,100, down from 8,500 in April.
Merchandise exports, however, continued to improve in line with trading partners’ demand which subsequently supported production in the manufacturing sector.
In May, exports rose 2.3% from the previous month, while showing a significant growth rate of 44.4% from the same period last year.
Source: https://www.bangkokpost.com/business/2141323/bubble-and-seal-step-to-hit-economic-activities