BANGKOK, 14 May 2014 –The Thai economic growth will likely be under 2 percent this year unless a new government is formed by the end of this year, said the University of the Thai Chamber of Commerce, .
Thanawat Polvichai, Director of the Center for Economic and Business Forecasting (CEBF) of the UTCC, said if the political unrest drags on and the new government cannot be formed by year’s end, the country’s economy will likely expand by less than 2 percent; if the situation worsens and violence breaks out, the growth could be negative, he added.
According to him, unless a new cabinet is formed within one year after the House dissolution, it will definitely send a clear message to other countries that Thailand is unable solve its internal problems within democratic boundaries, which will in turn sabotage their confidence in the kingdom’s stability.
However, if the situation improves and the House session begins in the latter half of the year, the economy will probably grow by 3 to 4 percent, said the UTCC director.
