Covid-19 Triggers all Thai Economic Aspects, Tourism Sector Contracts 76.4% : BOT

Bank of Thailand (BOT) released an Economic and Monetary Conditions for March and the first quarter of 2020 on April 30, 2020, showing that the Thai economy in March contracted at a higher rate than the previous month due to the effect of Covid-19 outbreak on economic activities in all aspects, in particular, the tourism sector.

 

The tourism sector contracted at 76.4% year-on-year in all nationalities as a consequence of travel restriction measures to halt the virus spreading in many countries included Thailand. 

 

The value of merchandise exports also contracted by 2.2% YoY in the line with the decline in trading partner demand and oil prices. The lockdown measures led an exportation of car and parts, machinery and equipment and petroleum-related products significantly contracted, otherwise exports of some products expanded such as electronic products, agro-manufacturing and electrical appliances.

 

Private consumption indicators contracted as a result of weakening supporting factors and a strict measures against the covid-19. 

 

Meanwhile the imports recorded growth by 4.4% YoY following China relaxed some lockdown measures, imports of some products turned into expansion.

 

In regard to the stability front, inflation became negative for the first time since June 2017, due to the sharp contraction in energy prices after global crude oil prices. However, the overall stability remained favorably.

 

Overall economic activities in the first quarter of 2020 contracted year-on-year in accordance with the economic slowdown, resulting manufacturing production and private investment indicators weakened. Inflation slightly increased QoQ on the back of core inflation and energy prices due to the low base effect last year.