As Thailand’s economy continues to suffer and several million Thais remain unemployed, research think tank KKP Research of Kiatnakin Phatra Bank says they believe it will take at least three months of lockdowns before Covid-19 cases are under control.
Their research is based on the assumption that the Delta variant of Covid-19 is more dangerous than the Alpha variant, as well as due to a shortage of vaccines in Thailand and lockdowns having been initially slow to be put into place.
Meanwhile, the Thai think tank points out this type of lockdown could be even more damaging to Thailand’s already decimated economy, with a further 1.0% drop in GDP being caused by such prolonged lockdowns.
As if that wasn’t serious enough, KKP Research also estimates prolonged lockdowns would negatively affect both the manufacturing and export sectors as well.
They readily admit these two sectors are “the only hope for the country’s economy”.
In other words, KKP Research seems to be advocating for a 3-month lockdown in Thailand, while warning doing so would doom the country’s economy to one even worse than during the 1997 Asian financial crash.
Considering that event, which also began in Thailand, caused a collapsed baht, an enormous rise in private debt and a devalued stock market, plus increased poverty, lower wages, and decreased employment and social welfare, one wonders why the KKP would even think a three-month lockdown is the solution?
Particularly as the number of Thais already struggling financially, due to the country being locked down to international tourists for the last 16 months, is far higher than before the Asian crash.
Surely, a three-month lockdown could cause them unmitigated economic damage?
