Thailand: Delay in new gov’t formation to affect economy hinh anh 1Governor of the Bank of Thailand (BoT) Veerathai Santiprabhob (Source: reuters)

Bangkok (VNA) – Governor of the Bank of Thailand (BoT) Veerathai Santiprabhob has raised concerns about economic impact of a possible delay in the formation of a new government.

According to him, investment under the state budget for the 2020 fiscal year, starting on October 1 this year, would be affected if the formation of the new government is delayed until August or September.

It would also affect public investment projects and the economy as a whole as it could cause a delay of investment decisions in the private sector, particularly projects under Public-Private Partnerships schemes in the Eastern Economic Corridor.

He stated that the central bank has forecast the impact of political factors under several scenarios. It previously revised down the country's economic growth rate this year from 4 percent to 3.8 percent.

The revision includes the assumption that election results are endorsed in time by the Election Commission's deadline on May 9.

If a new government can be formed by June, the economic growth rate will not be affected as investment would resume in the second half of the year, he said.-VNA