The Bank of Thailand BoT expressed concerns over the investment climate in Thailand after the recent protests of the anti-government United Front of Democracy Against Dictatorship UDD and the following riots took place. BoTs Senior Director, Suchart Sakkarnkosol disclosed on Monday that the BoT had dispatched BoT officers to collect data from domestic and international entrepreneurs whose businesses were affected by the rally and the riots.
He stated the obvious impact might not show in the short run but tended to influence Thai businesses in the long run. Foreign investors might shift their investment interests to Thailands neighboring countries such as Indonesia and Vietnam, while domestic investors might postpone their investment decision due to the lack of confidence.
Despite lingering political crises, foreign investors still show confidence in Thailand’s potential growth.
BoI indicated that the ongoing political crisis had not yet be affected the investment, but if political tensions were resolved, it would contribute positively to the investment atmosphere.
Businesses for which investors seek promotional privileges with the highest investment value include service and public utility with 115 projects and investment value of Bt77 billion; vehicles, machinery and metals with 85 projects and value of Bt20 billion; processed agricultural products and foods with 68 projects and a value of Bt17 billion; and electronic products with 63 projects and a value of Bt9 billion.
She said foreign direct investment (FDI) projects seeking investment promotions in the first four months of this year had the investment value of Bt53 billion, up 140 per cent from Bt22 billion in the corresponding period last year.
Mrs Atchaka attributed the increased FDI to the global economic recovery and more foreign investor confidence in Thailand.
Japanese investors remain the most active applicants with an investment value of Bt26 billion.
Thailand’s economic growth expected to return to 2019 levels in mid-2023
Although the economy would recover next year, the recovery is still substantially below potential level resulting in a large output loss and could affect Thailand’s potential economic growth in the future with the economy expected to return to 2019 levels in mid-2023.
The Siam Commercial Bank (SCB), one of Thailand’s largest commercial banks, said in its latest economic outlook report that the country’s economy may wait until the second semester of 2023 to return to 2019 growth levels.(more…)
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