The Asian Development Bank (ADB) has further cut its projection for the Thai economy for 2009, from a contraction of 2 per cent to 3.2 per cent, ADB country director for Thailand, Jean-Pierre Verbiest, said on Tuesday.
Mr Verbiest said the economic growth projection’s revision was based on the impact of global recession and the current political uncertainty, which had hurt confidence of the business sector and diminished the domestic consumption.
“Even if there is a sign showing that the economic recession has bottomed out, the political turmoil has pressured the country to post the lowest economic growth rate in Southeast Asia,” the ADB director said.
He said political conflict remains a major risk factor for the country’s future recovery.
“If there is any political unrest, it will affect the government’s economic stimulus measures under its Thai Khem Kaeng (Strong Thailand) scheme which is to inject as much as 1.44 billion baht into the system to shore up the economy over the next 2 to 3 years,” Mr Verbiest said.
ADB projected that the Asia region’s economic expansion would be around 3.4 per cent, boosted by the recovery in China and India.