Worried about a sign of investment and consumer confidence decline, the Federation of Thai Industry (FTI) has called on all conflicting parties to make one step back before the Thai economy experiences a setback.

FTI's Chairman Praphad Phodhivorakun said that the conflicts between anti- and pro-Thaksin groups had already dragged on for long, the Thai News Agency Wednesday reported.

The longer the difference persists, the more adverse impact the Thai economy will have, he said.

Praphad said the country's economy had begun to recess moderately, as could be witnessed by a decline in confidence among industry executives and consumers.

Local and foreign investment had also begun to slow with a decrease in applications for investment promotions with the Board of Investment of Thailand (BOT), he noted.

Because of this, Praphad said he wants to call on both parties to make a one step back and find a best way out for the ongoing conflicts. They should not allow the problems to continue unabated, he added.

The FTI chairman said he had instructed all industry clubs to assess impacts from the situation and make a conclusion within the next 1-2 days.

Then, a tripartite meeting between FTI, the Thai Chamber of Commerce and the Thai Bankers' Association will be held to evaluate impacts on all sides.

"The persistent political turbulence has affected investment, spending and exports as overseas purchasers have begun to slow product delivery to wait and see the clear political direction. Consumer products will be affected by the situation first. Should the situation drag on, it will affect both economy and employment, " he said.

Source: Xinhua