19/12/13

Cabinet Discusses Impacts of Political Situation on the Economy

The Cabinet, during its meeting on 17 December 2013, discussed impacts of anti-government protests on the economy and tourism.
It was concerned that the protests, which have continued for more than one month, might lead to
a further slowdown in the economy. 
Photo: AP
Government Spokesman Teerat Ratanasevi said that Deputy Prime Minister and Finance Minister Kittiratt Na-Ranong was assigned to look at the possibility of stimulating the economy under the framework set by the Election Commission of Thailand. For instance, the private sector might be asked to cooperate in helping revitalize the economy.
He said that an assessment would be made again to find out whether the economic slowdown would continue until the first quarter of 2014. Budget disbursement in the first quarter is likely to decelerate.
The Cabinet also acknowledged a report on Thailand’s economic performance in 2013 and outlook in 2014. The report was prepared by the Office of the National Economic and Social Development Board.
According to the report, The Thai economy in 2013 is projected to grow by 3 percent, compared with 6.5 percent in 2012. It is expected that tourist arrivals in 2013 will meet the target of 26.2 million. Inflation is expected to average 2.4 percent, compared to 3 percent in 2012.
As for 2014, the growth rate is likely to be around 4-5 percent. The economic performance is expected to improve owing to the recovery of the global economy, which will help boost exports. The situation will also bolster household consumption and investment. Inflation is likely to be in the range of 2.1-3.1 percent. International tourist arrivals in 2014 are expected to reach 28 million.
Meanwhile, the Secretary-General of Thailand Board of Investment (BOI) Udom Wongviwatchai said that despite the ongoing anti-government protests, BOI still opens its office in Bangkok and seven offices in the regions of the country to offer services to investors.
It pointed out that the anti-government protests have had minimal impacts on the public and private sectors, which continue to operate normally. Services such as public transport, banking, sanitation, and utilities have all been provided as usual. The protesters have declared their intention to continue their activities in a peaceful manner.
Confidence in Thailand’s long-term potential remains strong among foreign and Thai investors, and BOI continues to support and solicit projects from interested investors and companies.
BOI believed that Thailand’s investment in 2013 would reach about 900 billion baht, against 1.46 trillion baht registered in 2012. As for 2014, the country’s investment value is expected to be 900 billion baht, as it would be in 2013.

(thailand.prd.go.th)