BANGKOK, 5 June 2012 – The University of the Thai Chamber of Commerce (UTCC) has predicted that the Thai export figure will expand by less than 10% this year, as the European debt crisis is expected to affect the export sector.
According to Director of the UTCC Center for Economic and Business Forecasting (CEBF) Thanawat Polvichai, the European debt crisis, which is spreading to many countries in the region will have a negative impact on the Thai export. He explained that Spanish economy, the fourth largest in Europe, is in coma and that many analysts speculate that the nation will have to ask for the European Union’s assistance by July.
Mr Thanawat estimated that export expansion this year will be reduced to 8-9%, in contrast to the 15% growth predicted by the Commerce Ministry, citing the European problems as the main factor. He elaborated that the crisis has also affected other regions, leaving only the Asian market as the only reliable one.
The director further said although export will expand by less than 10%, Thailand could see around 6% of economic growth. He however expressed his worries over the domestic politics, saying if violence should erupt, the tourism industry will bear the brunt of the blow, and the expansion could be reduced to less than 5%.