Thailand Sees Worst Economy Shrinkage In Two Decades
COVID19 has led to an expected 7-9% GDP contraction of the tourism and exports reliant southeast Asian country
As the COVID19 pandemic continues to cripple the economies of countries around the world, Thailand is also seeing tough times with an expected Gross Domestic Product (GDP) contraction of seven to nine percent.
While most Coronavirus restrictions have been removed, the tourism and exports reliant country continues to remain under pressure due to the lack of global demand.
The opening of businesses and relief measures by the government enabled a positive consumer confidence for the fourth month in August. However, a university survey has revealed that the customer spending will remain very low till at least the fourth quarter.
According to business sources, the labour market is worrying with more than 3.2 million job losses, of which over 2.5 million people are not a part of the nation’s social security program.
As the southeast Asian country’s exports stumble, it is witnessing its biggest market shrinkage in the last two decades. The travel industry’s recovery will also be a slow process with only 6.7 million people expected to visit the popular international holiday destination this year, as compared to a record 39.8 million visitors in 2019.
Frequent anti-government protests in Thailand since mid-July continue to add to its administrations’s worries.
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