BANGKOK, 3 Feb 2014, -Despite the political impasse in Thailand, the majority of foreign investors have yet to withdraw their investments from the country, says the Bank of Thailand (BoT).
According to Governor of the BoT Prasan Trairatworakul, he is optimistic that foreign investors will remain confident in Thailand, given the nation has neither high inflation rate nor current account deficit, adding that the kingdom also has flexible currency exchange system with strong financial institutes and sufficient financial reserve.
However, if the political issue persists, several problems such as the rising costs of loans and logistics will ensue.
The December 2013’s Business Confidence Index was at 45.0, dropping from the 46.9 points reported in November. It is the sixth consecutive month that the index has declined, and the lowest since the 2011 floods.
The declining index was a direct result of the decreasing in both industrial and non-industrial sectors’ confidence, evinced by the lower number of local and international purchase orders and falling in revenue as well as higher cost of production.