Tuesday, July 27, 2021

BoT acknowledges economic impact of COVID-19

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BANGKOK (NNT) – The Bank of Thailand (BoT) has acknowledged that while some economic recovery was seen during December 2020, the impact of the new wave of COVID-19 infection will likely be seen at the end of this month with the effects to encompass tourism and exports, while US economic stimulus could also have repercussions.

Director of the BoT Macroeconomic Policy Office, Pornpen Sodsrichai pointed out this week that private consumption has risen in line with a recovery in spending power fueled by state support, but acknowledged household spending power still remains fragile. Exports have contracted in spite of private businesses returning to growth on the back of improving demand and confidence, as has the tourism industry as travel restrictions continue.

The new wave of COVID-19 infections remains the most crucial factor affecting the economy’s trajectory but the BoT is also keeping an eye on economic stimulus in the United States and its continued rivalry with China, which has provided Thailand with an opportunity as a preferred trading partner. The central bank believes that if Thailand can maintain its trade balance with both the US and China, it will help to prop up its production and market chains.

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