Thailand’s GDP this year set to contract 7.8-7.3%, not 5-6% previously forecast

The Baiyoke Tower II in Ratchathewi District, Bangkok

The Baiyoke Tower II in in the Ratchathewi District Bangkok, second tallest building in Thailand. Photo: pxhere.

Thailand’s household debt has increased to the highest level in four years, whereas the Gross Domestic Product (GDP) for the second quarter contracted 12.2%, prompting the Finance Ministry to forecast that the growth rate for the whole year will contract by 7.8-7.3%, instead of 5-6%, as previously predicted, due to impact of the COVID-19 pandemic.

Mr. Tossaporn Sirisamphan, Secretary-General of the National Economic and Social Development Board (NESDB), told the media on Monday morning that the adjusted growth rate for the whole year was based on the assumption there is no second wave of COVID-19 infections in Thailand. It is also assuming that the Government restricts the arrival of foreign tourists until the end of this year, that the adverse effects on the production sector will not impact financial institutions, through an increase in non-performing loans, and that the trade war between the US and China will not escalate.

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By Thai PBS World

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