Thai economic think-tank experts on Friday said that Thailand's gross domestic product (GDP) will shrink by 10 percent this year and then will recover in a U-shape after.
"The Thai economy reached the bottom of its downturn in the second quarter of this year and was facing many uncertainties including the COVID-19 pandemic, baht appreciation and political situations," said Nataporn Triratsirikul, assistant managing director of Kasikorn Research Center (K-Research)
"Therefore K-Research has revised its GDP decline projection further downwards from 6 percent to 10 percent this year.
"However, the Thai economy is set to recover in the form of U-Shape only if there is a vaccine for COVID-19, and that the Thai skies are open to tourists," Nataporn said.
The government would see tough challenges ahead in implementing economic stimulus measures well as risk to second wave infections remains, she said.
How well the Thai government handles the challenges will determine the shape of the U-curve, she said.
Thanyalak Vacharachaisurapol, deputy managing director of K-Research, said loans from Thai commercial banks would grow by 6.5 to 8 percent this year compared with 2.3 percent last year as banks were assisting customers in reviving businesses.
Commercial banks were financially strong and would be a key mechanism to help customers pass through the crisis, Thanyalak said.