China’s economic recovery takes up speed as the government steps up its stimulus measures. Latin America falls into deep recession as it struggles to get the pandemic under control. Limited room for monetary and fiscal support as interest rates approach zero and fiscal positions deteriorate.
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Thailand reported zero tourism receipts in April and May, since not a single foreign tourist spent vacation in the holiday paradise. The country has successfully reined in the spread of the pandemic as it implemented strict lockdown measures and banned inbound travel from early April on. This comes, however, at a high economic cost with tourism accounting for a fifth of economic output. As demand for international travel will likely remain subdued even after travel restrictions in Thailand are eased, the country will suffer a sharp economic loss.
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Latin America as well as South East Asia are ranking low on healthcare capacities, measured by the availability of physicians and hospital beds, while confirmed coronavirus cases per capita are highest in Latin America. Particularly in regions with strained healthcare conditions the fear factor is pronounced and although lockdown measures are being eased, consumers will remain reluctant to get back to their usual consumption patterns. Therefore, the path of economic recovery will likely be a bumpy one in countries that struggle to get the spread of the coronavirus under control.
