30 Sept 2021
Central Bank of Thailand Chief says Economy Still too Weak to Withstand Shocks
The Index Today
Central bank of Thailand announced on Thursday that despite the country having sound financial stability, it is still vulnerable and weak to withstand external dependence during the ongoing Covid outbreak.
Thailand’s tourism sector has suffered tremendously due to the severe covid infection outbreak. According to data, the economy experienced a 6.1% contraction and has a minimal projected growth of only 0.7% this year.
The nation’s fiscal framework including its financial institutions and balance of payments are considered as “quite good”, said Sethaput Suthiwartnarueput, Governor of Bank of Thailand. However, the economy is very fragile and is need of further stability when it comes to social and environmental factors.
The governor further went to say that Thailand must need to become more resilient to hold out against external shocks. The nation’s economic structure is heavily dependent on tourism, exports and technology. On the other hand, a growing dependence on foreign workers has also been recorded which reflects Thailand’s ageing population.
Businesses and households typically bear the brunt of drastic changes which in turn effect the economy and lead to income loss. According to economists, such losses strain the overall economy and take longer to recover. Thailand has also pointed towards its high inequality and informal sector which adds to its limitations.