Thailand’s economy sees biggest second quarter contraction since Asian financial crisis
- Southeast Asia’s second-largest economy shrank 12.2 per cent in April-June from a year earlier, the biggest drop since 1998
- The coronavirus pandemic has hit trade, tourism and exports, but the Thai government plans to add more stimulus measures this month
Southeast Asia’s second-largest economy, which is heavily reliant on tourism and exports, shrank 12.2 per cent in the second quarter from a year earlier, the worst contraction since the Asian financial crisis in 1998, data from the state planning agency showed on Monday.
But that was better than a 13.3 per cent slump seen in a Reuters poll, and compared with a downwardly revised 2.0 per cent fall in the March quarter.
On a quarterly basis, the economy shrank a seasonally adjusted 9.7 per cent, the deepest on record, but better than the 11.4 per cent drop forecast by economists.
The National Economic and Social Development Council (NESDC) cut its gross domestic product forecast for 2020. It now expects Thailand’s economy to shrink by 7.3 -7.8 per cent this year, having previously forecast a 5-6 per cent contraction.
“Today’s economic release underscores the collapse of aggregate demand, both externally and internally,” said Kobsidthi Silpachai, head of capital markets research of Kasikornbank. “Recovery will be lengthy as the shock to the demand and supply side has been the most severe in living memory.”