Private sector voices mixed reaction on Brexit

BANGKOK: The Thai private sector voiced mixed reactions over the Brexit referendum with many saying it would have minimal impact on Thai economy while some expressing worries that Thai exports will be most affected.

The director of the Centre for Economic and Business Forecasting of the Thai Chamber of Commerce University Mr Thanawat Pholwichai said although the pullout of European Union would give Britain more eased off strict regulations, it would affect its exports.

He said prices of commodities’ were expected to rise and eventually Britain could face recession.

This could interrupt its economy and trading with other countries in the world, this delay in the global economic recovery.

For Thailand, he said initial impact was that Britain may reduce its import from Thailand and fewer Britons would visit Thailand.

As for impact on global gold market, he said gold prices in Thailand have risen in tandem with global gold prices.

This was because more investors rushed to invest in gold which was the low risk asset.

The secretary-general of the Office of the Securities and Exchange Commission (SEC), Mr Rapee Sucharitkul, said Brexit would have only short term impact on Thailand.

He reasoned that currency fluctuations in Britain and other regions were earlier expected.

Besides SET index also fell not much or just 2-3 per cent when compared with other markets in the region.

He said the value of bilateral trade between Thailand and the UK was less than 2 per cent of the total trade value, therefore basic fundamental of the Thai companies would not be affected.

Director of the Office of Trade Policy and Strategy of the Commerce Ministry Mr Somkiat Triratpan commented that the falling UK currency would make Thai products more expensive and this could impact Thai export volume during the next 2-3 months.

However he voiced concern that the drop of the UK pound could trigger drop in the euro currency or not was difficult to predict.

Another bank executive said the pullout could cut Britain’s economic growth by 0.7 per cent, from 1.9 per cent to 1.2 per cent.

It could also shrink the EU economic growth by 0.2 per cent, from 1.4 per cent to 1.2 per cent.

But Thai export would feel the minimum impact as the trade volume between Thailand and Britain was only 1.4 per cent.

Source: http://englishnews.thaipbs.or.th/private-sector-voices-mixed-reaction-brexit/

-- Thai PBS 2016-06-25

For Thailand, he said initial impact was that Britain may reduce its import from Thailand and fewer Britons would visit Thailand

I think it is more down to stopping Thai's from ripping off and murdering tourists.

"For Thailand, he said initial impact was that Britain may reduce its import from Thailand and fewer Britons would visit Thailand."

Didn't take very long for the predictions to reverse and contradistc everything that was said previously. This time only 1 day for the 'no impact om ecopnomy or tourism' chant to fade away to a more realistic view.

Wonderful Thailand, the hub of U-turns and knee-jerk comments

W.