Thailand Cuts Growth Forecast as Coronavirus Hits Tourism

(Bloomberg) -- Thailand lowered its growth outlook for this year as its tourism-reliant economy takes a knock from the spread of the coronavirus.

Growth is seen in a range of 1.5%-2.5% this year, down from a previous projection of 2.7%-3.7%, the National Economic and Social Development Council said on Monday. Gross domestic product grew 2.4% in 2019, the slowest pace in five years.

The economy was already under strain before the coronavirus began spreading early this year, with growth weighed down by budget delays, drought and a relatively strong currency. GDP rose 1.6% in the fourth quarter from a year ago, lower than the 1.9% median estimate in a Bloomberg survey and down from a revised 2.6% in the third quarter.

First-quarter economic growth should be significantly impacted by the virus outbreak, and improve in the second quarter, Thosaporn Sirisumphand, the secretary general of the council, said in a briefing in Bangkok.

Travel curbs on Chinese visitors, the biggest source of tourism revenue in Thailand, are likely to take a hit, as tourism makes up about a fifth of GDP in the country.

The Bank of Thailand earlier this month cut its key interest rate to a new record low to support the economy, while the government is considering more measures to spur domestic tourism and consumption.

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