Business operators have more confidence in Thailand

BANGKOK, July 24 (TNA) - A latest survey has found that business operators have more confidence in the Thai economy in the second quarter of this year, their first increased confidence in four quarters with expected domestic economic recovery. The survey, conducted by state-run Krung Thai Bank (KTB) on about 2,300 business persons nationwide in the second quarter of 2014, found that the business operators' confidence index rose from 49.52 in the first quarter to 51.05 in the second quarter, the first increase in four quarters. The survey showed that the business operators based their growing confidence in the Thai economy on the relieved domestic political situation and economic stimulation measures implemented by the army-led National Council for Peace and Order (NCPO), including the local diesel price capped at 30 baht a liter, the extended imposition of the value-added tax rate at 7 per cent for another year, the maintained 20 per cent corporate income tax, support for small and medium-sized enterprises (SMEs) and the quick formulation of the 2015 national budget. However, the surveyed business operators indicated that risk factors remain, including pressures concerning labor and political issues from the United States and the European Union (EU), growing inflation and household debts. Benjarong Suwankiri, analysis director of TMB Bank, said the promulgation of Thailand's interim Charter presents a clear political structure of the country and boosts foreign investors' confidence; so, TMB has maintained its prediction that the Thai economy should expand by 2 per cent this year. Piyasak Manason, economic and industrial research head of Kiatnakin Bank, assessed that the acceleration of national reform could support Thailand's economic growth in the medium and long terms and his bank, thus, revised upward its prediction of the Thai economic growth rate in 2014, from 1.1 per cent to 1.8 per cent. (TNA)