World Bank Expects Thai Economy to Contract 5% in 2020 amid the Outbreak of Coronavirus

The impact from the coronavirus outbreak will significantly slow down economic growth in the East Asia-Pacific (EAP) region, throwing millions of people into poverty this year, warned the World Bank as economies are heading into a recession.

The Bank forecasted that the growth in EAP would slow to 2.1% this year from an estimate of 5.8% in 2019. The 2.1% would only occur if the recovery starts this summer.

 

However, Thailand is not among those countries with 2.1% growth this year. The country which heavily focuses on tourism, imports and exports, is severely wounded by the outbreak of coronavirus since the beginning of 2020.

The World Bank forecasted that Thai economy could contract 3-5% in 2020, which is among the worst-placed in the region.

 

The World Bank stated that more than 11 million people in the EAP region would fall into poverty, throwing away its earlier forecast which stated that the economic growth this year would be enough to lift 35 million people out of poverty.

 

In the dire situation, the World Bank pledged to provide $14 billion in financial support through a fast-track package to strengthen the developing countries affected by the outbreak. Meanwhile, the IMF will also commit $1 trillion in lending resources to support nations hit by the coronavirus.