Thailand’s economy shrunk by more than 12% in the second quarter compared to a year earlier, as the country’s major tourism sector and exports were hit hard by the coronacrisis. This is the strongest contraction of the Thai economy since 1998, when Asia was in the grip of a major financial crisis.
The decline was a little less pronounced than expected by 12.2 per cent, because economists in general expected a reduction of 13 per cent. To the crisis, the government of Thailand, with a large steunpakketten come up, and the interest rate is repeatedly reduced by the Thai central bank. The central bank is counting on an economic contraction of over 8% this year. In addition to the coronacrisis, the pro-democratic protests in the country create uncertainty about those predictions. For example, on Sunday, thousands of people were demonstrating in capital Bangkok for more democracy in Thailand.