Thai Bankers’ Association (TBA) said the outbreak of the coronavirus could cost the Thai economy 1.3 trillion baht or 7.7 per cent of the gross domestic product. Revenues from tourism will be hit the hardest with a loss of 1.1 trillion baht.
The Thai economy in 2020 will go into a recession matching that of the Tom Yum Kung crisis in 1997, said the TBA, and it could plunge even deeper if the outbreak inside the country is not contained within the second quarter of 2020.
However, the biggest difference between the Asian Financial Crisis in 1997/98 and the current pandemic is the “swift” response from the Thai government that has come out with “huge” economic relief packages in order to prevent a complete economic collapse.
“I believe that the government’s monetary and fiscal measures means that the economic contraction would be limited and should not spread out into a deeper turmoil,” said TBA President, Pridi Daochai.
“The economic situation will now depend on when the outbreak will be contained and, if needed, I believe the Thai government still has enough resources to support the economy throughout this crisis,” he added.
For prioritization, the association suggests that the government should concentrate on providing support for the healthcare and unemployment sector and people’s livelihood problems, such as the lack of basic necessities.
