The bank is maintaining its forecast of a 5% contraction for the full year. For the worst-case scenario, economic growth is estimated to dip 10% in 2020 if a second wave erupts. "The export sector is showing signs of recovery and should benefit from China resuming activity and lockdowns easing in other markets," Mr Tim said. "Amid the monetary policy easing trend, the policy rate is likely to be lowered to zero or even negative depending on economic circumstances and the new central bank governor's direction," he said. The government and regulatory bodies, especially the central bank, need to adopt new instruments rather than soft loan schemes to help SMEs withstand the virus crisis, Mr Tim said.

Source: Bangkok Post May 28, 2020 23:37 UTC