Impacts from Brexit

BANGKOK, June 27 (TNA) - The analytics of TMB, a Thai commercial bank, expects Britain's decision last week to leave the European Union (EU), or Brexit, should have temporary impacts, but TMB is following up updates to see whether any other EU member state will follow suit. Jitipol Puksamatanan, deputy director of the analytical center of TMB Bank, told journalists on June 26 that the temporary impacts might include the possibility of some other states to follow suit, which could expand the impacts. Besides, international investors are moving to more secure assets from stocks and bonds although ten-year government bonds offer 2 per cent returns. In the medium-term, Jitipol suggested that international investors develop confidence in the movements of their money. Jitipol said TMB has predicted that problems in the EU should reduce the value of Thai exports by 8-10 per cent and Thailand's economic growth rate should drop from 2.8 per cent to 2.7 per cent this year, before expanding to 3 per cent next year. The senior banker also assessed that uncertainty in the EU could have impacts on the global economy over the next few years and the number of European visitors to Thailand might fall by 8-10 per cent. The senior banker pointed out that other negative impacts on the Thai economy should include exports of Thai frozen chicken, electronic products and gems, advising concerned business operators to quickly find new markets. (TNA)