ID :
122543
Mon, 05/17/2010 - 15:56
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Shortlink :
http://m.oananews.org//node/122543
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Thailand’s GDP drops 0.5%+ in 2010 due to political unrest
BANGKOK, May 17 (TNA) -- Thailand’s gross domestic product (GDP) has declined more than 0.5 per cent since the beginning of 2010 due to the country's persisting deteriorating political stability and growth could fall even lower if the situation does not improve, a senior Finance Ministry official said Monday.
Director Ekniti Nitithanprapas of the Fiscal Policy Office’s Macro-Economic Analysis Division said fierce political unrest and clashes in the country for nearly three months was responsible for a decline in GDP of over 0.5 per cent since beginning of this year, higher than earlier projections that it could retreat between 0.2- 0.5 per cent.
Despite the unrest, the Fiscal Policy Office still maintains the country’s growth would be between 4 to 5 per cent, said Mr Ekniti, adding that a review on growth would be made next month.
It was projected earlier that only the tourism industry will be severely impacted by the political unrest, but the turbulence is now affecting several areas including investment by both Thais and foreigners, and falling consumer confidence seen from sharp drops in the public's spending and collections of value-added tax, Mr Ekniti said.
He also expressed his concerns over a possible downgrading of the country’s credit rating by international agencies.
Officials of the International Monetary Fund are scheduled to visit Thailand Friday to collect economic data while Moody’s Investors Service is due to arrive and start collecting information on June 1 after postponing its programme from May 20, he added. (TNA)
Director Ekniti Nitithanprapas of the Fiscal Policy Office’s Macro-Economic Analysis Division said fierce political unrest and clashes in the country for nearly three months was responsible for a decline in GDP of over 0.5 per cent since beginning of this year, higher than earlier projections that it could retreat between 0.2- 0.5 per cent.
Despite the unrest, the Fiscal Policy Office still maintains the country’s growth would be between 4 to 5 per cent, said Mr Ekniti, adding that a review on growth would be made next month.
It was projected earlier that only the tourism industry will be severely impacted by the political unrest, but the turbulence is now affecting several areas including investment by both Thais and foreigners, and falling consumer confidence seen from sharp drops in the public's spending and collections of value-added tax, Mr Ekniti said.
He also expressed his concerns over a possible downgrading of the country’s credit rating by international agencies.
Officials of the International Monetary Fund are scheduled to visit Thailand Friday to collect economic data while Moody’s Investors Service is due to arrive and start collecting information on June 1 after postponing its programme from May 20, he added. (TNA)
