Thailand Risks First Double-Dip Recession Since 1998 Crisis
- Some warn Thai economy could shrink for second straight year
- Political protests resume as Covid feeds popular discontent
A near-empty Patong Beach in Phuket, on July 19.
Photographer: Andre Malerba/BloombergThailand will likely be the worst economic performer in Southeast Asia this year, with economists continuing to slash the country’s growth forecast amid surging Covid-19 infections, mounting political tensions and fading hopes for a tourism revival.
The Finance Ministry on Thursday cut its 2021 gross domestic product forecast to 1.3% growth, from the 2.3% it expected in April. With new Covid infections and deaths continually breaking records since the latest surge began in April, some economists are flagging the possibility of a technical recession in the second half of the year -- or even a second straight annual contraction, something the country hasn’t seen since the Asian Financial Crisis more than two decades ago.