By Wanitcha Sumanas
Investing.com – Today’s Coronavirus Outbreak Covid-19 Situation Administration Center (CDC) 18,417 new cases
As for the economic risks, Mr. Setthaput Suthiwatanaruput The Governor of the Bank of Thailand (BOT) revealed at the “Thailand Focus 2021: Thriving in the Next Normal” event organized by the Stock Exchange of Thailand that although the Thai economy is affected by Covid-19 and is expected to recover more slowly than the region This is due to the high income that relies on tourism, about 11-12% of GDP. However, the Thai economy is highly resilient to the crisis. And looking at the downside risk (downside) from Covid-19 has begun to limit
The three factors that are noteworthy are:
Ability to pay Thai debt
Thailand’s strong foreign debt service capacity is reflected by its high international reserves of US$280 billion (approximately 9.2 trillion baht), while its external debt remains low. For example, the depreciation of the baht around 10% since the beginning of the year to the present. This is a result of the current account deficit. after the decline in tourism in Thailand
Banking sector strength
The strength of the Thai banking sector by commercial bank In addition, the BIS ratio remained high at 20% and the reserve level remained above the non-performing debt (NPL). in the midst of a crisis This was reflected in the growth of all credit groups.
Strength of Thai financial position Even the level of public debt to GDP rises during the crisis like all countries. It is currently above 50% per GDP, but is an acceptable level. And the government still has room to issue additional aid measures if needed. There are other funding channels such as the issuance of 10-year government bonds with interest rates below 1.7% or lower than the financial cost of many countries.
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