Thailand: Weakest GDP growth in five years – ANZ

Economists at ANZ Research review the data released by the Asian country which showed a sharp drop in GDP growth for the last quarter of 2019. USD/THB trades at 31.20 as the pair has escalated since the start of 2020. 

Key quotes

“Thailand’s GDP growth slowed sharply in Q4 to just 1.6% y/y, the weakest since Q3 2014.” 

“The economic outlook remains challenging amid headwinds stemming from the COVID-19 outbreak and inclement weather conditions.” 

“With conventional policy space diminishing, the bar for a further rate cut will be high. Nonetheless, the pressure on the BoT to act again will rise if the economic outlook continues to deteriorate.”

“Our current growth forecast for 2020 is 2.3% y/y. (...) The National Economic and Social Development Council is forecasting growth of 1.5-2.5%.”