Thailand’s financial system more vulnerable amid COVID-19: BoT
Thailand’s financial system has become more vulnerable due to the more-than-expected contraction of the country’s economic outlook due to impacts caused by the COVID-19 pandemic, according to the Bank of Thailand (BoT).
Bangkok (VNA) – Thailand’s financial system has become more vulnerable due to the more-than-expected contraction of the country’s economic outlook due to impacts caused by the COVID-19 pandemic, according to the Bank of Thailand (BoT).
At a meeting on July 8, the BoT assessed that the Thai economy will contract by 8.1 percent in 2020 but would expand by 5.0 percent in 2021 in tandem with a gradual improvement in both domestic and external demand.
The BOT’s monetary policy committee deemed it important to prepare financial measures to continuously alleviate impacts on households and businesses, especially after the phase-outs of the batch of financial and credit measures.
According to the BoT, fiscal and credit measures, monetary support policies and efforts to accelerate the debt restructuring process still have a key role in supporting Thailand’s economic recovery.
The bank said Thailand did not face deflation risks, although its inflation rate is expected to be negative 1.7 percent this year.
Thailand’s economy is said to fall into recession after its GDP fell by 1.8 percent in the first quarter of 2020 – the sharpest decline since the fourth quarter of 2011.
The Asian Development Bank (ADB) has forecasted that Thailand’s economy will fall by 6.5 percent this year, the sharpest decline among members of the Association of Southeast Asian Nations (ASEAN)
