BANGKOK, 19 May 2014 – According to the Office of the National Economic and Social Development Board (NESDB), the seven-month long political turmoil would hamper the growth of the Thai economy.
NESDB Secretary-General Akom Termpittayapaisit revealed that Thailand’s GDP for the first quarter of 2014 has shrunk by 0.6 percent. He also said that household spending has decreased by 3 percent, as people have been more cautious on spending due to the political protests. Investment activities have also reduced by 9.8 percent.
Regarding the overall picture of the Thai economy, Mr. Akom predicted that it would grow only 1.5 to 2.5 percent this year, which is lower than the original target of 3 to 4 percent. The NESDB secretary-general stated that the prolonged protests have prevented economic stimulus measures from taking place and the preparation for the 2015 Fiscal Year budget has been slow.
Investors are now turning their attention to the developed markets which have shown faster signs of recovery than the Asian countries. The NESDB secretary general added the number of tourist arrivals for this year has been lower than expected, as the tourism sector is still affected by the political situation.