BANGKOK (Reuters) – Thailand’s economic activity eased in February due to slowing activity in manufacturing and services, according to the central bank, which said it was monitoring any impact on the tourism sector of last week’s earthquake.
Tourism, a key driver of the Thai economy, also slowed in February from the previous month. The central bank said Friday’s quake, which was centred on Myanmar but collapsed a skyscraper under construction in Bangkok, could dent tourism further.
“The earthquake may affect tourism confidence and public spending, but it still needs to be assessed,” BOT Senior Director Pranee Sutthasri told a news conference.
The quake came ahead of “Songkran”, the Thai New Year, next month, also known as the water festival and a major attraction for foreign visitors.
The number of foreign tourists dropped 13.9% in February from the previous month while manufacturing declined 1% month-on-month.
Shares in Thai hoteliers fell on Monday, including Central Plaza Hotel, which dropped nearly 5% with the benchmark stock index falling 1.4%.
Assistant Governor Sakkapop Panyanukul said it was too early to assess the impact of the quake, which should be short term.
“The BOT is looking at the impact on the tourism sector, which could see flights and hotel bookings cancelled or postponed. But usually this does not take long to recover,” he said.
“But we haven’t seen any unusual cancellations at the moment,” he said.
Any quake impact will be discussed at the next rate meeting on April 30, he said. The BOT cut the key interest rate by 25 basis points to 2.00% last month on weaker growth concerns.
Southeast Asia’s second-largest economy recorded a current account surplus of $5.5 billion in February, with exports rising 13.9% from the same period last year and imports increased 4.1% year-on-year, the Bank of Thailand said.
Thailand’s financial services and businesses were operating normally, officials said on Monday.
Financial institutions have introduced relief measures to assist those impacted by the quake.
In Bangkok, Thailand’s capital, emergency crews using cranes and dog sniffers on Monday continued a desperate search for 76 people believed buried under the rubble of the under-construction skyscraper.
(Reporting by Orathai Sriring, Kitiphong Thaichareon, and Chayut Setboonsarng; Editing by Ros Russell)
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