Thailand economy shrinks most since 1997

• Feb 16, 2021

Thailand’s economy suffered its worst full-year performance in more than two decades, data showed on February 15, with officials citing the toll of a gutted tourism industry and ongoing political upheaval.

Last year’s 6.1 per cent contraction was the worst since a 7.6 per cent decline during the Asian financial crisis in 1997 and officials downgraded their 2021 growth forecast to 2.5-3.5 from a previous estimate of 3.5-4.5 per cent – despite a slight improvement in the fourth quarter.

“It has rebounded from the previous quarter due to the government’s stimulus package that boosted spending,” Office of the National Economic and Social Development Council (NESDC) secretary-general Danucha Pichayanan said.

Although the kingdom was largely spared the worst of the virus, pandemic-spurred partial lockdowns have hit the economy hard.

Thailand has logged over 24,500 Covid cases, with a jump of about 20,000 infections since late last year, after a second wave that stemmed from the country’s largest seafood market.

Some 40 million tourists had been expected to arrive in 2020, but as international travel ground to a trickle, their absence hammered the country’s services sector, bruising entertainment, retail, hotels and restaurants.

In response to the pandemic slump, the government implemented a record, 1.9 trillion baht ($59.7 billion) stimulus package, cash handouts and tax incentives.

Source: https://www.phnompenhpost.com/business/thailand-economy-shrinks-most-1997