Rina Oba, News Reporter
Introduction
As the COVID-19 pandemic is becoming a normal part of our lives, we must not forget the depressing damages of the virus. Thailand has been harshly impacted by the virus since the start of the pandemic, on March 22, 2020. The country overcame three COVID waves, and now we are on our way to reopening. What are the challenges for Thailand, now that the country is slowly recovering from the third wave?
How COVID impacted Thailand in general
First, let’s take a look at how COVID has affected the country. During the first wave which took place earlier in 2020, the GDP of Thailand experienced a decrease by 6.1%. This was the largest economic crisis for the country since the Asian financial crisis, and currently the economy is largely impacted by the lack of tourism. In fact before the pandemic, Thailand’s economy heavily relied on tourism making up 15% of its GDP. Yet the pandemic diminished its international tourists to almost zero. Moreover, other repercussions include 6.3% drop in exports, doubled number of population below the poverty line, and unemployment for 8.3 million people. It is clear that low-skilled workers, informal workers, and migrant workers experienced drastic impacts due to the pandemic.
How the third wave hit Thailand
The third wave, which is the most recent and worst wave for the country, began in April this year. The daily new infections averaged more than 1,000 cases, and deaths brutally escalated. Previously, the Thai government was able to successfully handle the virus. The government prohibited dining at restaurants, and gatherings of over 20 people. However since the start of the third wave, Thailand has struggled to manage the virus. It is clear that the third wave was disastrous to the Thai economy, therefore Thailand’s recovery from the third wave is projected to be gradual and challenging.
Actual repercussions of COVID
Now, let’s take a look at the actual impacts using data and statistics. As mentioned earlier, the pandemic deprived Thailand’s major source of income. Hence, it is predicted that approximately 8.3 million people will be unemployed. People who were working for the tourism industry, and the service industry were largely hit by the third wave. These workers are mostly low-skilled workers, informal workers, and migrant workers, which shows Thailand’s tremendous wealth gap structure. Since Thailand was working on the eradication of poverty over the recent years, the government will need to put extra effort in reconstructing its policy. Furthermore, small and medium-sized enterprises fell into crisis due to the pandemic. Thailand was able to circumvent the worst case scenario which might have led to 80% bankruptcy of the SMEs, which was predicted to occur only if the situation continued until the end of the year. These companies received adverse effects after the country closed its borders. The third wave of Thailand not only impacted the vulnerable, but has also caused the citizens in the middle and high social class. Thus, as the country further reopens, boosting tourism will be the key to recover from this economic recession.
How the country is dealing with the impacts
The Bank of Thailand reiterated the importance for boosting liquidity of SMEs (small and medium-sized enterprises), since they are the backbone of Thailand’s economy, being the determinants of the economy of the country. However, their efforts have failed to boost the liquidity of the SMEs.
Conclusion
All in all, the third wave has been detrimental to Thailand’s economy. As Thailand starts to reopen the country, we as individuals will need to be extremely cautious in order to prevent further spread of the virus, and support the economy. Besides, we should appreciate our blessings and always think about what we can do to support the people around us.
Works Cited
- https://www.bangkokpost.com/opinion/opinion/2188071/sensible-reopening-plan-still-lacking
- https://www.worldbank.org/en/news/press-release/2020/06/30/major-impact-from-covid-19-to-thailands-economy-vulnerable-households-firms-report
- https://www.bangkokpost.com/business/2113083/thailand-third-time-unlucky
- https://www.imf.org/en/News/Articles/2021/06/21/na062121-5-things-to-know-about-thailands-economy-and-covid-19
- https://www.tatnews.org/thailand-reopening/
- https://www.worldbank.org/en/country/thailand/publication/thailand-economic-monitor-july-2021-the-road-to-recovery
- https://www.bloomberg.com/news/articles/2021-07-05/pandemic-pushes-millions-of-small-thai-businesses-into-crisis
- https://www.bangkokpost.com/business/2144359/pandemic-pushes-millions-of-small-thai-companies-into-crisis
- https://www.thaiembassy.com/travel-to-thailand/thailand-travel-restrictions
- https://www.thailand-business-news.com/economics/78940-covid-19-poverty-social-protection-and-the-thai-economy.html
- https://www.bangkokpost.com/opinion/opinion/1783794/high-income-goal-needs-a-reality-check
- https://data.worldbank.org/indicator/NY.GDP.MKTP.CD?end=2020&locations=TH&start=2016&view=chart