Worst is Yet to Come for Thai Baht as Current Account Poised for Deficit

The Thai baht is set to lose more steam amid the current account deficit according to Bank of Thailand’s estimates expected to hit USD 15.3 billion. The baht has been struggling to keep up with the dollar amid rising bond yield recently as well gloomy outlook on bringing back tourism this year, which added to the current account deficit significantly. According to BOT’s data, in 2019 tourism contributed 20% to the Thai GDP which adds 2.9 trillion baht.

 

Bad omen rages over the baht with surging oil prices also adding to the momentum of the weakening baht leading to current account deficit further.

In an effort to bring back tourism, government put higher focus on promoting Thailand as a medical hub in the ASEAN region. Upscale hospitals such Bumrungrad International Hospital (BN TB) and Bangkok Dusit Medical Services (BDMS TB) are gearing up as the country opens its border starting November.

Bumrungrad launched COVID – 19 recovery unit which could attract majority of medical tourists from Middle Eastern countries, India, Pakistan and Bangladesh. BDMS and other hospitals catering to foreign patients are expected to follow the same.

According to Nikkei Asia, Thailand earned USD 1.8 billion in 2019 from medical tourism which was 3% of total earnings from tourism.

Thai baht closed at 33.925 USD/THB inching up by 0.50%.