Frozen Corporate Sentiment Amid COVID-19... Thailand Business Confidence Index Hits Lowest in Over 2 Years

[Asia Economy Reporter Jeong Hyunjin] Thailand's business confidence index has recorded its lowest level in over two years due to the impact of the novel coronavirus disease (COVID-19), raising concerns about the future economic outlook.

According to the Bangkok Post on the 17th, the University of the Thai Chamber of Commerce (UTCC) reported that the business confidence index for March was 37.5, a sharp decline compared to January (45.4) and February (44.9). This is the lowest figure since January 2018.

Tanawat Phonwichai, head of the UTCC Economic and Business Forecasting Center, explained that this result reflects the spread of COVID-19, the government's declaration of a state of emergency, nationwide curfews, and the closure of certain businesses. He stated, "Business owners in Bangkok and other regions commonly view the economic situation as the worst since 1957 due to the shock from COVID-19."

He particularly forecasted that the economic damage would be greater than during the 1997 Asian financial crisis. Tanawat also added, "COVID-19 has severely impacted almost all sectors, and it is estimated that about 10 million people will face unemployment this year."

UTCC expects Thailand's gross domestic product (GDP) to worsen by up to -4.9% this year. Previously, UTCC had projected a 1.1% growth in Thailand's GDP for this year. This figure considered the Thai government's COVID-19 support amounting to 1.9 trillion baht (approximately 71.2 trillion KRW), and without government support, the growth rate is estimated to plummet to -8.8%.

However, Tanawat mentioned, "If no new risk factors emerge, businesspeople are hopeful that the Thai economy can recover in the fourth quarter."

This content was produced with the assistance of AI translation services.