Thailand: Further strain to the economy – ANZ

Thailand’s economy had started 2020 on a weak footing even before the COVID-19 outbreak intensified and the disease is set to add more pressure to the current conditions, according to economists at ANZ Research. USD/THB trades at 31.447.

Key quotes

“The ongoing outbreak will add further strain to the economy, as tourist arrivals have been plummeting, trade with China has been disrupted, business sentiment has weakened and policy response will offer support, albeit limited.” 

“A further rate cut by the Bank of Thailand (BoT) looks likely as pressure for a coordinated global response grows.”

“We are lowering our 2020 growth forecast to 1.0%, from 2.3%. Annual contraction in Q1 is on the cards”