Prolonged protests to affect Thailand's economic growth

BANGKOK, January 16 (TNA) - The Ministry of Finance has assessed that Thailand's economic growth rate could fall to 2 per cent this year if political demonstrations persisted and the new general election was delayed from February 2, 2014. Somchai Sujjapongse, Director-General of the ministry's Fiscal Policy Office (FPO), told journalists on Thursday that, as the government's 2.2-trillion-baht infrastructure development projects have been delayed pending a ruling from the Constitution Court, Thailand's GDP growth should drop to 3.1 per cent this year, from 3.5-4 per cent, and if the protracted protests delayed the new general election, there would be negative impacts on confidence in the Thai economy among international business operators, as well as trade, consumption, purchasing power and debt repayment and the country's gross domestic product (GDP) growth could, thus, fall to only 2 per cent. Caretaker Deputy Prime Minister and Finance Minister Kittirat Na-Ranong acknowledged that economic ministers agreed at their meeting earlier in the day that anti-government protests, including sieges laid to government offices, have begun affecting consumers' confidence and tourism in Bangkok and other Thai provinces and the protests, if prolonged, could reduce Thailand's GDP growth rate to 3.1 per cent this year. Payungsak Chartsuthipol, Chairman of the Federation of Thai Industries (FTI), reported that the Thai Industries Sentiment Index (TISI) dropped to 88.3 points in December 2013, from 90.3 a month earlier, its new low in 25 months since December 2011, as local business operators in all sectors remain worried over prolonged domestic political problems, as well as declining domestic spending and purchase orders from trading partners. According to the FTI chief, the TISI over the next three months fell to 100.9 points due to smaller orders and sales and rising costs. The FTI chair revealed that local business operators want the caretaker government to figure out peaceful ways out of the ongoing domestic political turbulence as soon as possible. Meanwhile, anti-government protesters continued marching to many government offices on Thursday, their 4th-day "Bangkok shutdown" claim, including the Department of Special Investigation (DSI) and the Department of Public Works and Town and Country Planning. However, the Revenue Department's offices in Bangkok and nearby provinces have continued to function normally and prepared to cope with possible sieges by anti-government protesters. Revenue Department Director-General Suthichai Sangkhamanee told reporters that his staffs are ready to work online, while about 90 per cent of Thailand's tax payment processes have already happen on the Internet.(TNA)