BANGKOK, 30 January 2014 The Fiscal Policy Office (FPO) has reported that there are signs that the Thai economy is still weak partially due to negative political factors.
FPO Director Somchai Sajjapong on Thursday announced the country’s economic and fiscal situation in the fourth quarter of 2013, saying that there were signs indicating that the Thai economy contracted in December 2013 in terms of domestic spending and manufacturing. One of the factors negatively impacting the economy was the political impasse which undermined confidence of consumers and entrepreneurs as well as the tourism sector.
The FPO forecast that Thai exports would grow better following economic recovery in Thailand’s main trade partners. The office also forecast that the 2013 economy was likely to expand by 2.8% a year and 2014 3.1% a year, lower than the previous projection of 4% a year. However, growth would reach 3.1% a year if the 2 February general election took place, the director said.