In March 2020, the Thai economy contracted at a higher rate than the previous month, said the Bank of Thailand in a press release.
The COVID-19 outbreak affected economic activities more severely in all aspects. In particular, the tourism sector severely contracted due to international travel restriction measures in many countries including Thailand.
Merchandise exports excluding gold contracted at a higher rate, consistent with declines in trading partner demand and global crude oil prices. Private consumption indicators contracted as a result of weakening supporting factors and tightening COVID-19 control measures.
As a consequence of the contraction in domestic and external demand, manufacturing production and private investment indicators further contracted. Only public spending expanded thanks to disbursement after the enactment of the FY2020 budget.
On the stability front, some indicators deteriorated. Headline inflation became negative due to a sharp contraction in energy prices following global crude oil prices.
The labor market was more vulnerable
The current account registered a smaller surplus owing to the lower trade balance from the increase in merchandise imports value, and the decline in travel receipts. Capital and financial accounts posted deficits from both asset and liability positions. However, the overall stability remained sound.
Details of the economic conditions are as follows:
Foreign tourist arrivals severely contracted at 76.4 percent
The number of foreign tourist arrivals severely…