Thai GDP growth less than 3% despite cooling politics

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BANGKOK, Dec 10 – The dissolution of the lower House of Parliament, announced by the  government yesterday, will ease tension in Thailand’s economic sector, according to a leading industrialist.

Thanit Sorat, deputy chairman of the Federation of Thai Industries, said the private sector will drive the economy forward despite the limitations of an interim government.

He said the political turmoil, combined with the global economic slowdown, has a negative impact on the economy, particularly on the country’s exports.

The government’s plan for budget injections to stimulate the economy has been inactive, he said.

He said the lower-than-targeted public expenditure in the final quarter of the year will result in Thailand’s gross domestic product growth at less than 3 per cent next year,

The private sector predicted growth of 2.8 per cent.

He said the general election and formation of a new government in the first quarter of next year will create a vacuum in government spending, consequently having an impact on Q1 and Q2 economic growth.

The National Economic and Social Development Board’s projection of economic growth at 4-5 per cent next year may not be possible, he said.