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Chamber pushes for end to political strife amid sagging growth and lower spending
The private sector is suffering from a slowdown in domestic growth and lower spending in the current quarter, with the sluggish economic climate being caused largely by the ongoing political conflict and the government’s lack of measures to stimulate the economy in the latter half of the year, according to the Thai Chamber of Commerce.
The chamber suggests that all parties to the conflict should find a mutually acceptable “middle person” to help solve the crisis and end the political unrest as quickly as possible, to minimise any further impact on the economy.
“The economy is expected to grow only 1 per cent in the final quarter, the lowest quarterly expansion this year, because of the severe hit from internal problems and the impact from the slowing global economy,” TCC vice chairman Vichai Assarasakorn said yesterday.
He said economic growth in the third quarter could also have grown by less than expected, resulting in overall expansion of 2.7 per cent for the full year’s gross domestic product.
His comments were made during the first day of the 30th annual TCC meeting, being held this year in Trang.
Vichai said private enterprises, particularly in the trading sector, were experiencing sluggish spending due to the low confidence of consumers.
With the current political problems a major negative factor affecting growth, he said the conflict could be solved by a middle person – someone who was accepted by both the government and anti-government sides.
The government should also ensure transparency in regard to the recently passed Bt2-trillion infrastructure development bill. The power of each agency should be balanced to avoid conflict of interest, such as by separating work on accounts, finance and procurement, he suggested.
Thanavath Phonvichai, director of the University of the Thai Chamber of Commerce’s Economic and Business Forecasting Centre, said the economic slowdown and lower spending were mainly down to the country’s political problems.
The government, meanwhile, lacks clear measures to stimulate growth in the second half of the year, he said.
Moreover, delayed payments to farmers under the rice-pledging policy have also caused lower spending, as farmers are a growth driver for the economy, he added.
To promote economic growth, he said the government should pay more attention to economic issues rather than being concerned only about political matters.
