The spreading of the new and deadly coronavirus as well as the delay in the budget bill for the fiscal year 2020 is going to dampen the growth of the economy and it is going to grow at a pace which is softer than what had been expected during the quarter and also for the entire year and this is going to add the likelihood of another rate cut in the meeting of next week as per an official of the central bank. The economic growth in the first quarter is going to be subdued as per the experts.
The prediction of the Central Bank was for an economic growth level of more than 2% for the first quarter and for 2.8% for the entire year of 2020. The experts have also said that the Bank of Thailand have also made the prediction of the travel revenue to slide because of the coronavirus which is going to contract in the period. There are about 3 to 4 million of foreign based travelers who come to the city in one month and it is expected that there are 1 million of those who belong to China.
The tourists from China are usually averaging 3 million in one quarter and in this there are about 1 to 2 million who are expected at being shaved off in the first quarter.
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