💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

Thailand’s Economy Contracts for First Time Since 2014 on Virus

Published 05/17/2020, 10:39 PM
Updated 05/17/2020, 11:00 PM
© Reuters.  Thailand’s Economy Contracts for First Time Since 2014 on Virus

(Bloomberg) -- Thailand’s economy contracted in the first quarter for the first time since 2014 as the coronavirus outbreak cut off tourist arrivals and shuttered commerce.

Gross domestic product shrank 1.8% from a year ago, the National Economic and Social Development Council said Monday. That’s the first contraction since early 2014, according to previously published data. The median estimate in a Bloomberg survey of economists was for GDP to shrink 3.9% last quarter.

Key Insights

  • Thailand’s economy is heavily reliant on tourism and trade, both of which have taken a severe knock as countries around the world imposed restrictions to contain the coronavirus outbreak. Official data shows a 74.6% plunge in foreign tourist arrivals in March from a year ago
  • The government has stepped in with a stimulus package worth about 15% of GDP to help cushion the economy, which it expects will contract 5%-6% this year
  • GDP fell a seasonally adjusted 2.2% in the first quarter compared with the previous three months, better than the median estimate of a 4.2% contraction in a Bloomberg survey of economists

Get More

  • The Bank of Thailand is expected to cut its key interest rate by 25 basis points to 0.5% when it meets Wednesday, according to most economists surveyed by Bloomberg
  • Thailand began easing some of its lockdown restrictions this weekend, with shopping malls and retail businesses reopening

©2020 Bloomberg L.P.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.