Thailand’s Consumer Confidence Index (CCI) last month dropped to its lowest point in every sector in the past 19 months from 77.9 to 77.6.
Thai Chamber of Commerce University’s Economic and Business Forecasting Center director Thanawat Polvichai said the index decrease was due to concerns on political instability, the country’s economic slowdown and uncertainty about the world economy.
The confidence index on the economy overall last month stood at 66.6 and 67.9 in September.
Dr Thanawat said if the current political situation leads to a House dissolution, the government’s ongoing projects such as the Bt2 trillion infrastructure development will be suspended, resulting in the country’s opportunity loss on investments. However, he believed the country’s economy next year will grow at least 3 per cent within the range of 4.5-4.7 per cent
Meanwhile, Wallop Witanakorn, vice president of the Federation of Thai Industries (FTI), said the ongoing protests will not affect the Thai economy, based on the matters considered and their short-term duration.
However, if the demonstrations are prolonged, despite the government’s latest move to withdraw the controversial Amnesty Bill, confidence on the overall economy will be impacted, particularly on the tourism industry.
He said if political tensions ease, the country’s economy this year can grow maximum at 3.5 per cent.
Mr Wallop noted that continued political protests could result in Thai economic growth at less than 3.5 per cent.
