elef Posted September 10, 2008 Report Share Posted September 10, 2008 Bangkok Post 10-09-2008 Link World Bank: Turmoil brings short-term impact The current political turbulence in Thailand will produce a short-term negative impact on the Southeast Asian country, a senior Bangkok-based World Bank economist said Wednesday. Kirida Bhaopichitr said the number of foreign tourists visiting Thailand is expected to decline because of the political unrest while foreign investment in this country is not projected to decline greatly because would-be investors would look at several factors, especially the economic fundamentals, before investing. Foreign investors also watch for a continuity of government policies, preferably an administration which comes from a general election, Ms Kirida said. Thailand's investment climate is not expected to be affected if the government's policy remains unchanged, she said, adding that the Thai economy should improve after political tensions ease. "Thailand's export earnings remain high and this should compensate for dwindling revenue from tourism," according to Ms Kirida. She said she believed that the Thai government's investment policy would not change much if all the six parties in the caretaker government are able to form a new administration. Foreign investors are monitoring whether investment policy would offer advantages to businesses rather than the present political unrest. Ms Kirida said the World Bank is scheduled to review the Thai economy in December by taking several factors including domestic inflation, oil prices, the weakening baht currency, household consumption and world economic situation into consideration. In April this year, the World Bank forecast that Thailand's gross domestic product for 2008 would grow by 5 per cent. (TNA) Link to comment Share on other sites More sharing options...
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