Standard Chartered Expects Thai Economy to Shrink 8% as the Recovery Lacks Confidence

Standard Chartered Expects Thai Economy to Shrink 8% as the Recovery Lacks Confidence.

Mr. Tim Leelahaphan, economist at Standard Chartered Bank (Thailand), stated that the Thai economy in 2020 has bottomed out and expected a contraction of 8% for the year amid a slow recovery in the Thai economy and uncertainties in foreign countries, while expecting the economy to rebound 2% in 2021.

 

“Thai economy might be better at year’s end as the country faced the worst impact of Covid-19 earlier this year,” said Mr. Leelahaphan. “However, the current stage of recovery still lacks confidence, even though Thai exports started to see a recovery,” he added.

The economist from Standard Chartered Bank (Thailand) also advised to monitor the political situation in Thailand. While the Covid-19 situation in Asia began to ease, countries in Europe and America are still very concerning.

Additionally, Mr. Leelahaphan stated that the confidence of the financial market depends on the new economic cabinet, which will take upto three months to form the party after a reshuffling.