Fitch thinks political tensions are already weighing on economic activity - evident from a contraction in manufacturing output of around 7 per cent year on year in the fourth quarter last year.
"We expect the Thai economy will bounce back when political tensions eventually ease, underpinning our expectation of 3.5 per cent growth in 2014. But more prolonged and intensified political confrontation could eventually impair Thailand's economic performance relative to its rating peers, and which could undermine this credit strength," Fitch Ratings said.
The Nation