Kata Rocks
THE PAVILIONS PHUKET BRITISH INTERNATIONAL SCHOOL, PHUKET Kata Rocks
The Phuket News Novosti Phuket Khao Phuket

Login | Create Account | Search


Bank of Thailand: More than one solution

Bank of Thailand: More than one solution

BANGKOK: Concerns over the economy entering a technical recession have overshadowed the importance of addressing possible adverse effects on employment from the COVID-19 outbreak, says the Bank of Thailand.

tourismeconomics
By Bangkok Post

Tuesday 3 March 2020, 08:29AM


Bank of Thailand Governor Veerathai Santiprabhob. Photo: Jetjaras Na Ranong / Bangkok Post

Bank of Thailand Governor Veerathai Santiprabhob. Photo: Jetjaras Na Ranong / Bangkok Post

“Sometimes we wear the hat of an analyst that concentrates so much on the technical aspects of our forecasts and calculations. If we realise it is a technical recession, it is only a technical calculation,” central bank governor Veerathai Santiprabhob told the Bangkok Post in an exclusive interview.

“We should emphasise more how best to help mitigate the impact of the outbreak on the Thai economy or Thai society.”

A technical recession is defined as two straight periods of quarterly contraction.

The employment market is facing a host of risks this year, with widespread drought, poor exports, the previous delay of the 2020 fiscal budget and the coronavirus outbreak weighing on jobs, warned the National Economic and Social Development Council (NESDC).

The NESDC reported 37.5 million people were employed in the fourth quarter of 2019, down 1.1% year-on-year. This marks the third consecutive quarter of decreases.

“It is unavoidable that certain segments of society will be significantly hit by the outbreak, particularly those in the tourism sector or small and medium-sized enterprises that have been affected by not only the outbreak, but also a series of adverse incidents since last year: trade tensions, the drought and the [previous] delay of the [fiscal 2020] budget,” said Mr Veerathai.

The tourism sector, which accounts for more than 10% of GDP and has been the growth engine in recent years, is bearing the brunt of the viral outbreak.

BRITISH INTERNATIONAL SCHOOL, PHUKET

After a 2.5% rise in tourist arrivals in January, February’s figures likely slumped 40%, and a deeper decline is expected in March and April, Tourism Authority of Thailand Governor Yuthasak Supasorn told Reuters.

“To what extent we can mitigate the impact depends on the collaboration of various agencies. At this point, I think we all should realise that there is no one solution. It is a coordinated effort [and] an urgent effort from all parties to help those that have been impacted,” said Mr Veerathai.

At its first meeting in February, the central bank’s Monetary Policy Committee unanimously voted to lower the policy interest rate by 25 basis points to a historic low of 1%, seen as a preemptive move to shore up economic growth battered by the COVID-19 epidemic.

The Bank of Thailand has asked banks and non-bank financial institutions under its supervision to temporarily lower the minimum amount due on credit cards to below 10% of the outstanding balance and loosen the ceiling for personal loan credit lines in case of emergency for new coronavirus-hit debtors.

The Finance and the Tourism and Sports ministries were expected to unveil measures for Cabinet approval today (Mar 3) to stimulate tourism and aid those affected by COVID-19, but the announcement could be deferred to next week.

 

Read original story here.

Comment on this story

* Please login to comment. If you do not have an account please register below by simply entering a username, password and email address. You can still leave your comment below at the same time.

CAPTCHA

Be the first to comment.

 

Have a news tip-off? Click here

 

Phuket community
French tourists arrested for hookah party in Kamala

Ok Peace, let's not be racist, but we must admit that it is always the same people who are wreak...(Read More)


Immigration issues automatic visa extensions for all visa types

Well now I'm glad I went to immigration and did my 90 day report on April 1st, now that it turns...(Read More)


Chinese tourists questioned for illegal spearfishing in protected area

And now full force of the law on them! Double for the thai guide! Set a impressive example of '...(Read More)


Immigration issues automatic visa extensions for all visa types

How many hundreds needlessly exposed? Should have been done 2 weeks ago. ...(Read More)


Phuket Governor order warns of B20k fine for not wearing mask in public

@goldwing... these are emergency decrees by order of the government in order to prevent the widespre...(Read More)


Mains water supply outage in Rawai and Karon

r...how do arrive at your conclusion that the work is not urgent? As Pascale rightly points out, &qu...(Read More)


Phuket Songkran allowed, but stay in your subdistrict, says Governor

Bloomberg reporting Phuket infection rate at 36 per 100, 000 while Bangkok is at 21. This easing of...(Read More)


Phuket Songkran allowed, but stay in your subdistrict, says Governor

the shut down both the island and kathu is nt true. Please do what you annouced. My girl's relat...(Read More)


TAT issues full summary of COVID-19 restrictions in Phuket

my GF's grandma is still feel free to travel to Hatyai 2 days ago. And come to Wichit from Kathu...(Read More)


French tourists arrested for hookah party in Kamala

They are only French on their ID cards and whenever they want help from our government. They're...(Read More)