Monday, August 21, 2017 - 21:09:59

Bangkok shutdown expected to hit Thai economy hard

Print

The Bangkok Shutdown is expected to whack 40 billion Baht (1.25 billion USD) off the Thai economy or 0.2 percentage point off its growth as consumers cut back on daily living and travel expenses, according to the University of the Thai Chamber of Commerce.

"The lower confidence from the political chaos could cause huge losses in the economy from slowdowns in spending, investment and consumption as well as limited travel for both Thais and foreigners," Thai newspaper The Nation quoted Thanavath Phonvichai, director of the university's Economic and Business Forecasting Centre, as saying.

"Because of the weak sentiment, consumers are expected to spend about 500 million Baht less a day, while daily tourism income would drop by between 200 million Baht and 500 million Baht."

A UTCC poll found that consumer confidence had plummeted to its lowest level in two years, mainly because of the political tensions, while consumer sentiment to purchase a new car or home, to travel or to start a new investment, especially among small and medium-sized enterprises, had dropped to the lowest in seven and a half years.

Spending in Greater Bangkok is expected to fall by 5-10 percent a day, while spending in other provinces could slip by 1-5 percent.

Gross domestic product might grow by only 3-4 percent this year instead of 4-5 percent as previously expected.-VNA
Your comments about this article ...
Others