Persistent political turmoil reducing GDP growth by 2-3%, says banker

BANGKOK, April 24 (TNA) – Thailand’s current political turmoil will reduce the gross domestic product (GDP) growth by 2-3 per cent if it continues escalating, according to a top banker.

Kasikornbank executive vice president Chatichai Payuhanavichai said that the GDP growth will drop by around 1 per cent if the tension eases.

Given this scenario, he sees GDP this year expanding in a range of 3.5-6 per cent.

M. Chatichai voiced optimism that the ongoing political standoff should begin easing now that the United Front for Democracy Against Dictatorship (UDD) protesters agreeing to retreat from the Sala Daeng intersection and Silom Road, to ease the confrontation with a group of Multi-Coloured demonstrators gathering to resist the occupation of the capital’s bustling area by the UDD protesters.

He conceded the ongoing rallies had affected trades and tourism in the downtown centres of Ratchaprasong and Silom Road, with a psychological effect on consumers’ spending on high-price products such as houses, vehicles, and luxurious goods.

He said non-performing loans (NPLs) incurred by commercial banks from the political unrest had not yet occurred because NPLs stem normally from missed payments of loans for more than three months.

The banks still enjoy profit growth of 10 per cent in the first quarter, but it is expected that the political disturbances will affect investment and commercial loans to a certain extent for some time to come, he added. (TNA)