BANGKOK, Dec 11 – Ongoing political turbulence in Thailand leading to the recent closure of two airports here by anti-government protesters in November, together with the global financial crisis, further depressed consumer sentiment in November as three vital indices dropped to their lowest in seven years, according to an academic.
Saowanee Thairungroj, vice rector of the University of Thai Chamber of Commerce (UTCC) said Thailand's economic confidence index in November retreated to 67.1 from 68.6 in October, the employee confidence index fell to 67.9 from 69.2 and the personal income confidence index declined to 87.8 from 89.5.
Although domestic oil prices have declined steadily, exports are still growing and six government-sponsored economic measures aimed at helping the poor have worked positively, Dr. Saowanee said, the indices fell because of political unrest in Thailand.
The National Economic and Social Development Board (NESDB) reduced this year's economic growth projection to 4.5 per cent from an earlier estimate of 5.2-5.7 per cent and next year's to some 3-4 per cent from the 4-5 per cent projected earlier.
The UTCC Economic and Business Forecast Centre has forecast that local consumption will remain sluggish until at least the first quarter of 2009 because consumer confidence would remain steady and below 100.
The centre director Thanawat Palavichai said although domestic oil prices had fallen, most consumers believed that the cost of living remained high.
Dr. Thanawat said Thailand's economy is expected to grow only 1 per cent during the fourth quarter of this year, and if the political turmoil continues the economy would contract between 1-2 per cent during the first half of 2009.
He called for political peace and speeded-up budget disbursements by the new government to stimulate the domestic economy.
The shutdown of Don Mueang domestic airport and Suvarnabhumi international airport by protesters between November 26 and December 3 had damaged Thailand's image in the eyes of foreign tourists, according to Apichart Sankary, president of the Association of Thai Travel Agents, especially Asians and Europeans, which would hurt the tourism industry during the ongoing peak season.
Mr. Apichart urged the new government being formed now to come up with measures to boost tourism in the country.
