Political uncertainties pose a threat to foreign investment in Thailand

[snoop1130]

 

The Siam Commercial Bank (SCB) Economic Intelligence Center (EIC) has warned that escalating political uncertainties may deter foreign investments in Thailand's financial, capital, and long-term direct investment markets. EIC's chief economist, Somprawin Manprasert, highlighted that political instability could seriously undermine foreign investor confidence, potentially triggering significant capital outflows from foreign investors in Thailand's stock market.

 

Somprawin further pointed out that these internal political issues could influence the nation's economic policies, increasing uncertainties and negatively impacting business confidence.

 

Simultaneously, the EIC forecasted that Thailand's central bank would begin reducing its policy rate in the final quarter of this year, decreasing it to 2.25% from its current 2.5%. A further reduction to 2% is expected early next year, backed by incoming economic stimulus measures.

 

In revising the Thai GDP growth outlook, EIC adjusted its 2024 growth prediction to 2.5% from the prior 3%. This growth is largely attributed to the service sector and an expected upturn in foreign tourist visitation. The GDP growth for next year is projected at 2.7%.

 

Meanwhile, the EIC made several revisions to this year's economic indicator forecasts. Government consumption growth is projected to fall to 1.4% from the earlier 3.3%. Private and public investment growth are predicted to decline to 3.6% and -0.5%, respectively, while export growth is expected to decrease to 2.6%.

 

Lastly, Somprawin noted the structural challenges facing Thailand's economic growth. He cited constrained merchandise export growth due to a sluggish recovery of Thai exports and global trade volumes. Nevertheless, moderate GDP growth is anticipated in the second half of the year, despite pressure on private consumption resulting from increased household sector vulnerability.

 

File photo for reference only

 

-- 2024-06-19

 

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[hotchilli]

If Srettha is removed, MFP dissolved and Thaksin raising his ugly mug by bringing Yingluk back then Thailand will be the laughing stock of Asia.

Investment from overseas will go to other nations.

[mfd101]

1 hour ago, hotchilli said:

If Srettha is removed, MFP dissolved and Thaksin raising his ugly mug by bringing Yingluk back then Thailand will be the laughing stock of Asia.

Investment from overseas will go to other nations.

If Srettha is not removed, MFP is not dissolved and Thaksin does not raise his ugly mug by bringing Yingluk back, then nothing will change and Thailand will still be the laughing stock of Asia. Investment from overseas is already going to other nations.

Edited June 20 by mfd101

[hotchilli]

17 minutes ago, mfd101 said:

If Srettha is not removed, MFP is not dissolved and Thaksin does not raise his ugly mug by bringing Yingluk back, then nothing will change and Thailand will still be the laughing stock of Asia. Investment from overseas is already going to other nations.

You got that right.

[Thingamabob]

SCB might consider telling one of its' directors who, as a member of the current govt, is proposing taxing foreign remittances and foreign income, that she should reconsider so as to avoid turning away foreign investment.

[spidermike007]

There seems to be one political certainty here. The greedy, corrupt and obnoxious army will continue to exert control over politics, until the people stop them and the greedy and utterly useless generals. 

 

That, and inconsistent policy, such as cannabis laws, will continue to inhibit investment. Which is good. Nothing like egg on the face to teach arrogant fools a lesson. 

Edited June 20 by spidermike007

[paddypower]

no way institutional investors are going to invest in Thai baht bonds or equity, so long as there is a risk that the baht might be devalued by the foreign currency speculators.  again.

[villageidiotY2K]

1 hour ago, hotchilli said:

You got that right.

hello there. ru srettha by any chance? cus ur profile pic, if not forget me not

[villageidiotY2K]

lol his wife 

[john donson]

lol

 

so not the TAX worldwide income, even you keep it in home country ?

 

cya