Finance Office: Unblocking to release vitality for Thailand’s economic recovery
Helped 1.6 million small, medium and micro enterprises in addition to saving 8.5 million jobs
Thailand’s China Daily reported the latest release from the Macroeconomic Department of the Office of Finance of Thailand The economic report pointed out that after the government lifted restrictions on business operations and people’s travel in 29 crimson-affected areas across the country, it will have a positive impact on the overall economy. It is initially estimated that it will help 1.6 million small, medium and micro enterprises to maintain normalcy. Operate and ensure the stability of 8.5 million jobs. Thailand’s GDP growth rate is expected to be 1.3% in 2021. At the same time, it is also predicted that the overall situation of the epidemic in Thailand will slow down in the fourth quarter, and it is expected that 140 million doses of vaccine will be obtained within this year.
Officials of the Finance and Economics Office believe that the positive effects of the lifting of epidemic prevention measures on the economy are very obvious. In the context of the gradual decline and maintenance of new cases at a low level and the increasing number of vaccinated people in China, people’s confidence in health will become stronger and stronger.
The Thai Chamber of Commerce recommends that the government accelerate the reconstruction of public confidence and prepare for a long-term fight against the new crown virus. It also emphasizes that if a new round of epidemic is discovered again, it hopes that the government will not adopt a one-size-fits-all approach to impose a blockade on the entire government. Take the approach of regional blockade.
Many countries have now reduced their attention to the number of newly confirmed cases in a single day, and instead focus on data on moderately worsening severe cases and death cases. Judging from the fluctuating epidemic situation in several countries where vaccinations exceed 50%, new infections cannot be completely eliminated, but as long as they can be treated, no severe cases or deaths should be acceptable results.
On the 1st of this month, the Thai government officially launched business operations and restrictions on people’s travel in 29 crimson-affected areas across Thailand, restaurants, shopping malls, shopping centers, beauty salons, massage parlours and tutoring classes. /Training centers have been approved to resume operations,However, it is still necessary to cooperate with the government's epidemic prevention requirements to wear masks, test for abnormal body temperature, or produce vaccination certificates.
The Finance Office predicts that as the service industry, which accounts for 62.8% of the gross national product, resumes operations and gradually returns to normal, it is expected that Thailand’s GDP growth in 2021 is expected to reach 1.3%, which is slightly higher than the upper limit predicted by the Thai Development and Reform Commission. It also gives three reasons for the continued improvement of the economy. The first is the recovery of the global economy and trade, the second is the government's series of measures to stimulate the economy, consumption and investment, and the last is the steady increase in farmers' income.
As for the epidemic situation in Thailand, the Office of Finance and Economics believes that from the current government's epidemic prevention measures and vaccination progress, it is expected that the epidemic situation in Thailand will generally stabilize in the fourth quarter. The daily increase of nearly 20,000 cured people will greatly alleviate the problem of excessive public medical burden. It can be said that all things are developing in the good direction.
As of August 30, 2021, Thailand has received 31 million doses of vaccines. According to the government's vaccine procurement and delivery from this month to the end of the year, the monthly delivery of Kexing vaccine in September and October during the rainy season is 6 million doses, and the delivery of 7.3 million doses of AZ vaccine in September will increase the delivery volume. In other words, Thailand may receive 140 million doses of vaccine before the end of the year, which also ensures that 50% of the country’s population will be vaccinated before the end of the year.
In addition, the job market has also released positive signs, and the unemployment rate is expected to be controlled at around 1.9% throughout the year. The government will play a key role in stimulating consumption. If the government can introduce stimulus measures in the fourth quarter, then domestic consumption in Thailand will be greatly boosted, and improved consumer confidence will bring greater benefits to the overall economy. .
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