Prolonged protests will dampen economy: UTCC
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The Thai economy this year could show growth of only 3.2 per cent from the current forecast of 3.5 per cent, If the political protests are prolonged to the end of this year, warned an economist.
Thanavath Phonvichai, director of the University of Thai Chamber of Commerce's economic forecasting centre, said Thursday that the political instability is dampening consumption and probably the tourism industry.
"The prolonged protests would shave off the growth by 0.1-0.2 percentage point. If this continues to next year, the economy then should rise by only 4.8-5 per cent from the current forecast of 5.1 per cent," he said.
The centre today revealed that Thailand's consumer confidence in October extended a decline for seven consecutive months, on fears that political instability would pressure the economic growth.
At 76.6 points, the consumer confidence index is at a 19-month low, since April 2012.
Vachira Koonthaweethep, deputy director of the Thai Chamber of Commerce University's forecasting centre, attributed the fall to the intensifying political instability as well as the Bank of Thailand's recent downward revision for the 2013 economic growth forecast.
