FTI: Political Vacuum likely to affect Thai GDP

BANGKOK, December 10 (TNA) - The Federation of Thai Industries (FTI) predicts that a political vacuum may cause the national economy to grow slower than expected this year and next year. FTI Deputy Chairman Tanit Sorat said that House dissolution would relieve tension in the private sector and pending the formation of the next government the national economy could run by itself because the private sector was actually driving the economy while the government was only a supporter. However, Mr. Tanit said that the impacts of politics, the global economic slowdown and the government's spending that is much lower than expected will cause the Thai economy to grow by less than three percent, possibly by 2.8% this year. According the FTI deputy chairman, in the first quarter of next year, the government will not stimulate the national economy and its spending will be suspended pending the upcoming elections and the formation of the next government. The impacts of the vacuum will continue in the second quarter and may cause the economic growth rate to be lower than 4-5% next year that the National Economic and Social Development Board expected, he said. Meanwhile, the Tourism Council of Thailand reports that as of Dec 2, political demonstrations in Thailand did not prompt the tourists who already confirmed their visits to cancel their trips to the country but they avoided demonstration venues and changed their destinations to other provinces. At present, 32 countries maintain their travel advisories about Thailand but their warnings are not serious. Many countries including China start to review their warning, said the council. (TNA)