The escalating Covid-19 impact has prompted the Joint Standing Committee on Commerce, Industry and Banking (JSCCIB) to revise down its GDP growth target to negative territory, with a range between -1.5 and 0%, depending on how well the virus is contained.
The gloomy economic prospect was projected as the group is more worried about Covid-19 infections in factories which will affect domestic supply chains and exports.
However, JSCCIB remained optimistic about the export sector, believing it will grow by 10-12% this year due to global economic recovery.
Payong Srivanich, the chairman of the Thai Bankers' Association, a key JSCCIB member, said the domestic economy is at risk of facing a slowdown in the second half of 2021, which will be different from the same period last year when the country eased lockdown measures.
"The economy tends to slow down while the global economy is recovering. The government must speed up procuring more vaccines and distribute them quickly," he said.
During its meeting on the economic situation yesterday, JSCCIB agreed not to change its inflation forecast, maintaining a range of 1-1.2% this year.
The group is closely monitoring the extended lockdown measures which took effect on Aug 3 and cover 29 provinces.
The government will assess the outcome after 14 days and may consider extending them until the end of this month if the outbreak shows no sign of abating.
"If the government cannot curb daily new infections in 14 days, it should mean a failure," said Mr Payong, adding JSCCIB disagrees with a plan to extend the lockdown until the end of this month.
The group expects the ongoing lockdown, which restricts travel and retail businesses in 29 provinces, will cost around 300-400 billion baht to the economy.
"Businesses, especially small and medium enterprises, will continue to bear the impact and it is harder for them to recover," said Mr Payong.
Supant Mongkolsuthree, chairman of the Federation of Thai Industries which is also a JSCCIB member, urged the government to relax rules on vaccine imports.
"The government should allow the private sector to import vaccines without the need to make the purchase through state agencies. The government should only regulate imports," he said.
The Food and Drug Administration should also speed up its process to approve more vaccine brands in order to offer more alternative vaccines, said Mr Supant.
Sanan Angubolkul, the chairman of the Thai Chamber of Commerce, stressed the government should give rapid antigen test kits to companies free of charge in order to quickly take infected workers for treatment and reduce transmissions.
