Thai business group slashes fourth GDP outlook for 2021 amid virus outbreak

On January 6, 2021, as the coronavirus disease (COVID-19) spreads in Bangkok, Thailand, people wearing face masks head to Chinatown to buy street food. REUTERS / Athit Perawongmetha / File Photo

Bangkok, July 7 (Reuters) – Leading Thai business groups on Wednesday set their fourth forecast for economic growth for 2021 this year at 0.5% to 2.0% to 0.0 due to the prolonged third wave of COVID-19. Despite infectious diseases and higher exports, down from% to 1.5%.

The largest outbreak in tourism-dependent countries in April saw most cases and deaths, and has already severely affected a fragile economic recovery.

“The rapid and serious third wave affected domestic demand, but a clear global economic recovery led to Thai exports,” Payon Srivanich, chairman of the industrial, banking and commercial joint venture group, said at a briefing. It will bring benefits. “

The group raised its export growth forecast for this year from 5% to 7% and 8% to 10% as global demand exceeded expectations, but cited factory infections as a risk.

In the first five months of 2021, exports grew 10.78% year-on-year, according to customs data.

Supant Mongkolsuthree, chairman of the Federation of Thai Industries, told the briefing that the economy is expected to contract this year if the epidemic gets out of hand, more restrictions are imposed and the number of foreign tourists does not rise. ‘goal. ..

Southeast Asia’s second-largest economy shrank 6.1% last year. It is the most severe recession in more than 20 years as the tourism sector has been devastated by a pandemic.

Report by Satawasin Staporncharnchai and Kitiphong Thaichareomn Written by Orathai Sriring Editing by Ed Davies

Our criteria: Thomson Reuters Trust Principles.

Thai business group slashes fourth GDP outlook for 2021 amid virus outbreak

Source link Thai business group slashes fourth GDP outlook for 2021 amid virus outbreak


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