Politics

Political tension hinders Thailand’s growth

The University of the Thai Chamber of Commerce (UTCC) has revised down its forecast of Thailand’s gross domestic product growth for 2014 to below 3 percent as political tension is set to linger.
The University of the Thai Chamber of Commerce (UTCC) has revised downits forecast of Thailand’s gross domestic product growth for 2014 tobelow 3 percent as political tension is set to linger.

Exports are projected to grow about 6.5 percent, with a total value of245.35 billion USD next year. Meanwhile, imports are expected at 272.37billion USD, an increase of about 8 percent, resulting in a tradedeficit of 27 billion USD.

Inflation would stay between 2.8 percent and 3.3percent in 2014, UTCC said.

If the political climate stabilises, Thailand’s gross domesticproduct growth for 2014 should be around 4.5 percent, lower than theprevious forecast of 5.1 percent.

UTCC said a positive factorthat will boost the economy in 2014 is an improving global economywhile negative factors are the ongoing political turmoil, thefluctuation in foreign exchange rates and uncertainty in global economicrecovery.-VNA
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