Thailand economy may grow 3-4%, less than forecast, this year as Covid-19 re-emerges

BANGKOK: Thailand’s economy could grow 3-4% this year, less than earlier forecast, following its biggest coronavirus outbreak yet, while the key interest rate should remain low to support domestic activity, the finance minister said on Thursday.

Southeast Asia’s second-largest economy will be helped by government stimulus and exports, while the outbreak should be contained by March and vaccines will be administered starting next month, Arkhom Termpittayapaisith told Reuters in an interview.

“If the outbreak is contained, the impact may not be much,” he said. “Growth of 3-4% should be satisfactory,” he added. “The worst case should be 3%”.

The World Bank predicts gross domestic product (GDP) growth of 4% for Thailand this year.

The export and tourism-reliant economy is also expected to grow in the first quarter from a year earlier, Arkhom said.

With coronavirus cases tripling since…