Thai economy probably affected by violence in Syria

BANGKOK, August 29 (TNA) - The Bangkok-based Kasikorn Research Center (KRC) has warned if ongoing political tension in Syria continues to raise world oil prices, Thailand gross domestic product (GDP) growth rate may drop by 0.5-0.7 per cent. The KRC predicted on Thursday if the global crude oil prices and domestic retail fuel prices rose by 10 per cent, Thailand's GDP growth rate should drop by 0.5-0.7 per cent but headline inflation should increase by 0.7-0.9 per cent although the leading private research house noted that it is difficult to assess impacts of the current political conflict in Syria on Thailand's economic figures and inflation this year. The KRC cautioned that impacts on Thailand's GDP and inflation could further increase if capital outflows continued to weaken the value of the Thai baht simultaneously, and that a slowdown in domestic purchasing power is another factor which could have negative impacts. The private think tank acknowledged that the ongoing tension in Syria and other countries in the Middle East requires a close watch, as Western countries plan an intervention in Syria in response to its alleged use of chemical weapons against civilians on Aug 21, 2013, while the violent political strife in Syria and nearby Egypt has raised world oil prices by more than 10 per cent over the past few months. The leading Thai research firm pointed out that last week's intensified tension in the Middle East caused the global crude oil prices to make a new high in months and raised world gold prices and the value of the US dollars, which has also been cushioned by public expectation that the US Federal Reserve (FED) should relieve its quantitative easing (QE) measure in its next meeting on September 17-18, 2013. The KRC said it wishes ongoing political conflicts in the Middle East will not be prolonged. (TNA)