Currency and Interest Rate Outlook slide image

Currency and Interest Rate Outlook

K ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK KASIKORNTHAI Challenges: Exports Export is expected to mediocre in 2021 amid global trade uncertainties and transitions to structural changes Short-term Challenges Key Structural Problems Key Affected Products Short-term Measures from Authorities and Related Parties Long-term Measures from Authorities and Related Parties ■Faltering global demand ■THB volatility Exports ■■US trade policy, e.g. measures to reduce trade deficit from 16 major countries ■Trade uncertainties ■High dependence on China's market ■Changing demand in electronic products and loss of competitiveness in some areas (e.g. HDD) High crop surplus among competitors ■Electronics and Electrical Appliances (Structural Challenge) ■Fishery and Agriculture Products (US SIMP) ■Steel and Aluminum, Washing machine (US tariffs) ■Plastic, ICs, Machinery and Electrical Equipment (US-China's trade dispute) ■ Extending products to catch up with changing consumer trends ■ Enhancing practices to comply with international standards ■Setting up export promotion board ■ Providing supports to help individuals gain skills and qualifications relevant to the needs of the labour market ■Negotiating FTA and regional trade agreements ■Relocating factories to GSP eligible countries ■Promoting BOI's privileges which grant merit based on competitiveness enhancements ■ Enhancing productivity Note: HDD Hard Disk Drive; IUU fishing = Illegal Unreported and Unregulated fishing; FTA = Free Trade Area; GSP = Generalized System of Preferences; BOI = the Board of Investment of Thailand Source: KResearch (as of April 2019) บริการทุกระดับประทับใจ 151 K ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK KASIKORNTHAI Tourism industry in Thailand expected to take over 3 years to recover to near pre-COVID-19 level %Tourism Revenue to GDP (%) 20% 18.2% 17.9% 11.6% 11.4% 10% 5.2% 6.5% 3.0% 1.6% -2.3% 1.5% -2.0% 6.6% 0% 2.2% 2018 2019 2020 %Foreign tourism revenue to GDP %Total toursim revenue to GDP 0.1% -0.3% 2021 %Domestic tourism revenue to GDP No. of Foreign Tourists and Domestic Trips • • The Thai government's 120-day target of reopening the country to international tourists (around the start of 4Q21) will help revive business activity in the tourism sector. Nevertheless, success rests on nationwide vaccination efforts and containment of COVID-19 outbreaks, both domestic and overseas. However, tourism continues to be rife with uncertainty. KResearch has thus revised downward the upper end of its projection on the number of tourist arrivals in 2021 to 650,000 and the lower end of our projection is at 250,000 tourists. Domestic travel has been impacted by the latest wave of the COVID-19 pandemic and it may take a while for the situation to be controlled. KResearch has thus revised downward the number of domestic travelers during 2021 from previous estimates. Domestic travel is now anticipated at 60-70 million trips, compared to the 85-109 million trips projected in April 2021. Tourism Revenue (Bt bn) (Million Persons) 166.0 172.7 (Million Trips) 180 4,000 2,947 2,994 50 130 39.9 86.3 3,000 38.2 60-70 80 1,876 1,912 2,000 25 30 1,071 1,082 269-363 6.7 0.25 -0.65 1,000 813 339 474 0 -20 250-318 19-45 2018 2019 2020 2021 0 No. of Foreign tourists (persons) Note: As of May 2021, KReseach estimates tourism data for 2020 to 2021 บริการทุกระดับประทับใจ No. of Domestic trips 2018 2019 ■Foreign Tourism Revenue ■Total Revenue 2020 2021 Domestic Tourism Revenue 152
View entire presentation