BANGKOK, 11 February 2012 The World Bank has projected economic growth of 4% in Thailand this year and indicated that exports will be the driving force of the economy amid the political standoff.
World Bank Country Director for South East Asia Ulrich Zachau said the bank’s latest report on the Thai economy suggested that the country would see 4% growth in 2014 mainly due to the recovering global economy which would lead to 6% growth in the Thai export sector. However, the bank warned that the 2014 Thai economic expansion might decrease if the political crisis dragged on until a new government could not be formed.
The political factor was still difficult to predict but strong fundamentals of the Thai economy would offset the tendency for a recession, said the director.
World Bank senior economist Kirita Phaophichit also remarked that the Thai economy grew by just 1.3% in the fourth quarter due to slowdowns in exports, domestic consumption, investment and government spending. Although the political impasse had not affected the macro economy, it had undermined confidence, especially in the tourism sector, she said.