Export to push Thai economy despite political rifts

BANGKOK, 4 May 2010 (NNT) – The export sector is expected to help drive the Thai economy forward despite negative effects to the business sector from the persisting political upheaval, according to the Thailand Development Research Institute (TDRI).

TDRI Research Director, Dr Somchai Jitsuchon, believed that the Thai economy would not contract much thanks to an outstanding growth in the export sector although the ongoing domestic political rally would cause short-term problems such as temporary unemployment .

Dr Somchai added that the economy could go on well in the long-term if all sides turn to negotiate and help reform the nation. He said all governments should listen to their people since some of the protestors have been affected by operation of the government.

As for the long-term economic trend, the academic recommended the government to move towards a welfare state, support the business sector at the same time, and regulate capital transfer to ensure adequate money circulation in the system.

Dr Somchai also projected the Thai economy this year to grow by 5% if political ends quickly.