As Thailand hit by its worst COVID outbreak, economic risks rise

Thailand introduces strict lockdown-like measures to rein in the virus, endangering an already badly hit economy.

Thailand risks fueling its decade-high unemployment rate and household debt with the imposition of lockdown-like measures to contain the deadliest Covid outbreak to hit the nation. The greater Bangkok area, accounting for about 50% of Thailand’s gross domestic product, will shutter shopping malls, spas, massage and beauty clinics for at least two weeks starting Monday. A mandatory work-from-home rule for most government employees, overnight curfews and curbs on domestic travel are set to hurt retailers, airlines and restaurant operators, already reeling from some form of Covid restrictions for more than a year. Thailand is tightening restrictions to stem the spread of the more contagious delta variant of Covid that’s also fueled a surge in cases from Indonesia to Vietnam, and scuppered their plans to open up borders. The latest measures may further delay the Thai economy’s recovery from its worst slump in more than two decades and derail Prime Minister Prayuth Chan-Ocha’s target to welcome back vaccinated tourists by as early as mid-October.