Domestic politics to affect Thai econ growth

Kasikorn Research Centre (KResearch) has suggested that domestic political stability and international economic situation be monitored closely as they might affect the Thai economic condition in the latter half of this year.

KResearch projected that the Thai economy in the second half this year will expand continuously with the tendency to outperform the first half as the production sector, especially the automotive industry and the export sector are recovering well.

Nonetheless, there are other factors that might affect the Thai economy in the second half this year including the domestic political situation after the 3 July general election, which will affect the 2012 budget bill and the political vacuum pending formation of a new government.

Other factors that must be monitored are policies of the new government, the confidence of the private sector, global economic direction, rising trend of the national inflation rate and the domestic fuel prices.

KResearch thereby expected that the Thai economy in the last two quarters this year will grow in the projected frame of 3.0-4.0% given that the Dubai crude oil price must be around 108 US dollars per barrel.