Thai Economy News

H1N1 could knock 2.2 percentage points off Thai economy

Flu could knock 2.2 percentage points off economy (Bangkok Post)
The H1N1 flu pandemic could cause the economy to contract by 2.2 percentage points this year in a worst-case scenario, the Fiscal Policy Office says. The Finance Ministry unit estimates that the flu could cause the economy to contract by 0.51 to 2.2 percentage points. A base scenario, where the flu has a high immediate impact but a rapid recovery is seen, would hurt the economy by 0.85 percentage points. The FPO last month estimated that the Thai economy would contract by 3% this year, with a range of -2.5 to -3.5% overall. But the forecast did not include estimates on the impact of the flu, which has so far claimed the lives of 65 people in Thailand with over 8,800 local cases recorded.

H1N1 could knock 2.2 percentage points off economy.

The H1N1 flu pandemic could cause the economy to contract by 2.2 percentage points this year in a worst-case scenario, the Fiscal Policy Office says. The Finance Ministry unit estimates that the flu could cause the economy to contract by 0.51 to 2.2 percentage points.

A base scenario, where the flu has a high immediate impact but a rapid recovery is seen, would hurt the economy by 0.85 percentage points. The FPO last month estimated that the Thai economy would contract by 3% this year, with a range of -2.5 to -3.5% overall.

But the forecast did not include estimates on the impact of the flu, which has so far claimed the lives of 65 people in Thailand with over 8,800 local cases recorded.

Joe Miller
the authorJoe Miller
I have been living in Thailand for over 20 years and witnessed the many changes the country has undergone since the Asian Financial Crisis. I have spent time in Phuket, Samui, Hua Hin, and Chiang Mai, but I gravitate back to Bangkok when all is said and done. It is here that I spent years running a software development company and teaching at universities. These days I live on the Internet with Bangkok as my base. I never stopped believing in the enormous potential of Thailand's kingdom, which is why I joined the ThaiVest Team.