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113540
Fri, 03/26/2010 - 09:18
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http://m.oananews.org//node/113540
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Thaland's business affected by current political standoff: UTCC
BANGKOK, March 26 (TNA) – Entrepreneurs across the sprectum of economic activity in Thailand concede their businesses have been affected by the current political standoff, according to a survey by the University of Thai Chamber of Commerce (UTCC) Economic and Business Forecasting Center.
Thanawat Polvichai, center director, said the survey was conducted using a random sample of 820 entrepreneurs on their opinions about impacts on the Thai economy from hefty oil prices, currency exchange volatility and ongoing political conflicts.
The survey found the current political standoff had a negative impact on the agriculture sector by 62.5 per cent, the trade sector 66.7 per cent, the service sector 77.4 per cent, and the industrial sector 51.7 per cent.
Should the political rallies drag on for another one to three months, the entrepreneurs thought, it would affect the business sector by 44.64 per cent.
Higher diesel oil prices at present affected overall costs by 61.1 per cent and the transport costs by 65.7 per cent.
Dr Thanawat said the oil price range that does not affect business should stay between 26.3 and 30.1 baht per litre and the appropriate currency exchange rate between 32-32.5 baht to the US dollar.
Mr Thanawat conceded the current political situation had not yet affected the economy because transportation and communication remained unaffected.
Still, local sales should be impacted by 10 per cent or Bt500-800 million in value since people are more careful in spending.
The number of local tourists is expected to reduce by 15 per cent or Bt5-8 billion baht in terms of value. Despite the political turmoil, he forecast, the economy would continue to expand 3.5-4 per cent this year.
Should the standoff drag on for another month, the expected economic growth would contract by 0.1-0.2 per cent to 3.3-3.8 per cent. If the conflicts are prolonged for three months, growth would fall by 0.3-.05 per cent to 3-3.5 per cent, he said. (TNA)
Thanawat Polvichai, center director, said the survey was conducted using a random sample of 820 entrepreneurs on their opinions about impacts on the Thai economy from hefty oil prices, currency exchange volatility and ongoing political conflicts.
The survey found the current political standoff had a negative impact on the agriculture sector by 62.5 per cent, the trade sector 66.7 per cent, the service sector 77.4 per cent, and the industrial sector 51.7 per cent.
Should the political rallies drag on for another one to three months, the entrepreneurs thought, it would affect the business sector by 44.64 per cent.
Higher diesel oil prices at present affected overall costs by 61.1 per cent and the transport costs by 65.7 per cent.
Dr Thanawat said the oil price range that does not affect business should stay between 26.3 and 30.1 baht per litre and the appropriate currency exchange rate between 32-32.5 baht to the US dollar.
Mr Thanawat conceded the current political situation had not yet affected the economy because transportation and communication remained unaffected.
Still, local sales should be impacted by 10 per cent or Bt500-800 million in value since people are more careful in spending.
The number of local tourists is expected to reduce by 15 per cent or Bt5-8 billion baht in terms of value. Despite the political turmoil, he forecast, the economy would continue to expand 3.5-4 per cent this year.
Should the standoff drag on for another month, the expected economic growth would contract by 0.1-0.2 per cent to 3.3-3.8 per cent. If the conflicts are prolonged for three months, growth would fall by 0.3-.05 per cent to 3-3.5 per cent, he said. (TNA)
