Thailand’s solid fundamentals will contribute to economic growth at 2-3 per cent and export expansion at 5-7 per cent this year, according to a leading Thai banker.
Kobsak Pootrakool, executive vice president of Bangkok Bank’s International Banking Group brushed aside a negative description of Thailand’s economy as a sick man, saying the Thai people’s purchasing power has dropped but not significantly.
People are always in the shopping mood but they have deferred purchases of major items such as cars and homes, he said.
He said the government’s cancellation of the state of emergency has spurred tourism after a number of countries lifted warnings against visiting Thailand.
The number of travellers via Suvarnabhumi airport which suffered an 8-per cent decline during the use of the emergency decree has returned to normal while the formation of new Board of Investment members will help stimulate investment in the country, he said.
Mr Kobsak said small- and medium-sized businesses have balanced themselves and moved on despite slight deficits while the Thai economy will surge back late this year unless the political crisis worsens.
If the political impasse is prolonged without violence, the Thai economy will grow about 1-2 per cent, he said, adding that the economic situation will be worse than the 2010 Thai economic meltdown if the political turmoil escalates.
However, it is estimated that about Bt50 billion of funds in circulation will disappear from the Thai market this year given the suspensions of the Bt2 trillion investment on infrastructure development and the Bt350 billion water management project, he said.
