The latest trade figures from Bank of Thailand shows that Thai exporters continue to suffer. The value of Thai export was 26.5 percent less in May than a year ago.
Annual exports have contracted for seven consecutive months, with weakness spreading to the domestic economy, dragging the country into its first recession in a decade in the first quarter.
Export and tourism accounts for 67 percent of the gross domestic product in Thailand. Both sectors are suffering. The number of tourists to Phuket has dropped by more than 20 percent the last two months. The visiting tourists are spending less and staying for shorter periods, according to local hotel and resort owners.
Analysts feel it is too early to tell if Thailand has reached bottom.
“Overall, it show that signs of economic recovery are still fragile. Manufacturing seems to be shrinking from last month, but looks better than the first quarter. We have to follow the figures in coming months to see whether the contractions in key indicators get less or not. They’re still uncertain”, said Kevalin Wangpichayasyuk at Kasikornbank today.
The National Economic and Social Development Board, the state planning agency, said last month Thailand had slipped into its first recession in a decade as household consumption, investment and exports flagged.
Facing its worst crisis in years, Thailand’s tourism industry is going to great lengths to drum up business that has plunged thanks to political upheaval, the global recession – and now swine flu fears.
"I don’t see any positive factors," said Kongrit Hiranyakit, head of the Tourism Council of Thailand told AP today. "Oil prices are increasing, influenza is spreading all over the world. Political protests are bad for the country’s image."
So far, the slump has not led to big job losses, but many hotels have put employees on temporary leave without pay. Thai hotels and restaurants had 100,000 fewer seasonal workers in March than they did in February.
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