Thai economy is plummets, the GDP in the first quarter at 2.6%, and seemed to reduce.

GDP in first quarter of 2021 (Q1/2021) is contracted at 2.6 per cent compared to the previous quarter.

The economy in the first quarter of this year was affected by the COVID-19 outbreak at the beginning of the year and the impact of the epidemic from last year. Significantly, the tourism and services sector has contracted by 63.5 percent, while the spending on semi-durable goods also continued to decline 10.8 percent due to the decrease in expenditure on furniture, household equipment and home repair, as well as clothing and shoes.
Thoroughly, the total investment in Thailand is improving from 2.5 percent in the previous quarter to expand by 7.3 percent, and the private investment also resumed its expansion by 3 percent for the first time in five quarters. However, the public investment has grown very high at 19.6 percent, accelerating from a 0.6 percent expansion in the previous quarter. Moreover, the exports of products and services were valued at $ 64,004 million, returned to expand after heavily contracted in the last four quarters.
Interestingly, the Office of the National Economics and Social Development Council has also lowered its 2021 GDP forecasting from the original expected to expand of 2.5 to 3.5 percent with a median value at 3 per cent, drop down to only 1.5 to 2.5 percent.
Also, the Ministry of Finance has decreased its prediction for this year’s economic figure (GDP) from 2.8 percent to 2.3 percent that was caused by the new wave of the COVID-19 epidemic both nationally and internationally, which directly affects international travelling, including the reduction of foreign tourists. The expected foreign tourists to travel to Thailand also has to be re-anticipated from 5 million to 2 million by the end of the year, which has cut revenue from this section decreased to 1.7 billion baht from 2.6 billion (contracted 49 percent).
However, suppose countries are able to distribute vaccines efficiently. In that case, the economic activities will begin to resume in the second half of Q3/2021 to the beginning of Q4/2021 towards the end of this year.
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