Political factors to continue deterring economy

BANGKOK, 4 January 2010 (NNT) – The Bank of Thailand (BoT) has predicted that the Thai economy in 2011 will be driven by private investment and consumption while warning that politics is still a major risk factor to the country’s economy.

BoT Governor Prasarn Trairatworakul said that in 2010 the Thai economy recovered at a good pace after being hard hit by the world economic crisis in 2009. The gross domestic product (GDP) growth of 7.3-8 percent was higher than expected, thanks to the lively export sector which expanded nearly 30 percent.

As for this year’s prediction, the BoT governor said the economy would grow but at a slower pace compared to last year, which would be in line with the world economy. The export sector is also expected to see less expansion at only 11-14 percent. He suggested that the political situation be closely monitored as it could continue to hinder the national economy.