the Growth of the Thai economy in 2019 was the slowest for five years as growth slowed exports and investment, reports Reuters.
it is Noted that such slow growth increases the pressure on the Central Bank to reduce interest rates and to protect the second largest economy in Southeast Asia by the epidemic of the coronavirus.
the Agency for state planning, on 17 February also lowered its economic growth forecasts for 2020 to 1.5-2.5 percent from 2.7-3.7 percent. The Agency also reduced the forecast for export being the main driving force of growth to 1.4 percent from 2.3 percent, as predicted in November.
the GDP of Thailand in the first quarter may contract compared with the previous quarter, but recovered in the second quarter, as the tourism sector of the country needs to recover, said at a press conference the Deputy Secretary General of the National Council for economic and social development (NESDC) Vichealth Buncit.
He added that in the first quarter is expected to decline, however, in the second quarter the situation will improve, so the country is not expected a technical recession.
this year NESDC expects the number of foreign tourists will decrease to 37 million with a record 39.8 million last year due to the outbreak of the virus. The tourism authority of Thailand said that the loss of income could amount to 500 billion baht (22.3 billion US dollars).
Dependent on trade, the economy of Thailand suffered from a trade war between the US and China, weak domestic demand and the delayed adoption of the budget and drought, but tourism has become a bright spot.
Many analysts expect the Bank of Thailand (BOT) will continue to cut rates to record low levels to support growth this year.
Gross domestic product increased by 1.6 per cent in October-December compared with a year earlier, while experts polled by Reuters predicted growth of 2.1 percent and an increase of 2.6 percent in the Trthe third quarter.
In 2019 the economic growth was 2.4 percent, which is the slowest pace in 2014. It is consistent with the forecast of analysts, but fell sharply from a revised upward figure of 4.2 per cent in 2018.