Economy beginning to turn around after pandemic

Thailand’s economy has started to pick up from adverse effects of containing the coronavirus pandemic and is starting its steady climb back to positive growth.

“Most economic indices improved in July from the previous month. Therefore, the third-quarter economic outlook is expected to improve from the second quarter,” said Wuttipong Jittungsakul of the Fiscal Policy Office, Thailand’s Ministry of Finance.

“The economic recovery is anticipated to be swoosh-shaped, similar to the Nike logo,” he said.

Thailand’s economy has earlier contracted due to measures and restrictions that were employed to halt the spread of the coronavirus, which have achieved a public health success.

The Kasikorn Research Center confirmed the recovery trend, while describing it as U-shaped and gradual. The Center, which is part of Kasikorn Bank, one of the largest commercial banks in Thailand, credited government spending with stimulating the turnaround.

The fiscal budget, which equals to about 4.5 percent of GDP, will help drive the economy, said Nattaporn Triratanasirikul, Assistant Managing Director of Kasikorn Research.

Industry Minister Suriya Juangroongruangkit expressed his optimism, citing the Manufacturing Production Index (MPI), which increased in July for the third consecutive month.

The Minister said many companies expressed interest in relocating to Thailand from other countries, because of the Kingdom’s effective and transparent response to the pandemic.

Photo courtesy of https://www.thaigov.go.th/news/contents/details/21697