Political crisis to dampen economic growth in Thailand: Expert

Thailand's ongoing political confrontation, if prevailing for 3 to 6 months, will dampen the country's economic growth by 0.5 to 1.5 percent owing to reduced investment, according to a leading financier.

A number of foreign investors have inquired about the political uncertainty since they felt confused and worried about the current political situation, Supavuth Saichue, President of Phatra Securities Public Company Limited's Research Division, was quoted by Thai News Agency as saying on Friday.

If the political uncertainty drag on for 3 to 6 months, the country's investment, expected to grow 12 percent this year, would reduce by half, thus cutting down economic growth by 1 to 2 percent, Supavuth Saichue said.

Since the election campaign could boost spending and help ease contraction, the economic expansion is likely to drop by 0.5 to 1. 5 percent, he added.

On Thursday, Thailand has suspended free trade talks with the United States until a new government takes office after April 2 snap elections, said Foreign Ministry spokesman Sihasak Phuangketkeow.

Earlier this week, Thailand said it would postpone the Free Trade Agreement signing with Japan, originally scheduled for early April, due to the current political crisis.

Source: Xinhua