UTCC sees Brexit affecting Thai economic growth

BANGKOK, 28 June 2016 (NNT) – The University of the Thai Chamber of Commerce (UTCC) anticipates the United Kingdom’s decision to leave the European Union will impede Thailand’s economic growth by depressing exports.

Director of the UTCC’s Center for Economic and Business Forecasting Thanawat Polwichai has assessed that the Brexit will negatively affect investor confidence and draw down investment in the stock market, slowing down the world’s economic recovery and ultimately impacting demand for Thai exports. He added the situation will also keep fuel prices under 50 USD per barrel, keeping farm goods from moving up in price. Overall, the center expects Thai export growth to be -2 percent this year.

Thanawat noted effects from the Brexit may extend to the tourism sector, further impeding the nation’s overall economy, estimating growth during the latter half of the year will likely not exceed 3 percent now after earlier predictions of 3.3 percent. The center’s full year growth prediction has been tempered to 2.9 percent but it noted that state investment of 20-50 billion baht should compensate for any impacts from the Brexit.

-- NNT 2016-06-28

I'm shocked the National News Bureau of Thailand, a mouthpiece of the govt, would print such an article as they almost always print rosy articles...how things are going great, how a new govt program will fix all ills, how some event is expected not to or minimally affect Thailand, at a minimum there is a silver lining on every dark cloud, etc. Maybe this article wasn't screened before public release...it slipped through.

Wow. An admission finally, that Thailand is a member of the nations on this planet, and therefore can be affected by the things that happen on this planet. How very observant. How thoughtful, and visionary of them to think this way.

In reality Brexit will have far less of an impact than the continued idiotic, and incompetent policies of the little man in charge.

Edited June 28, 201610 yr by spidermike007

Wow. An admission finally, that Thailand is a member of the nations on this planet, and therefore can be affected by the things that happen on this planet. How very observant. How thoughtful, and visionary of them to think this way.

In reality Brexit will have far less of an impact than the continued idiotic, and incompetent policies of the little man in charge.

pack a small suitcase

Why will it depress exports? Pound goes weak which should encourage exports!

Wow. An admission finally, that Thailand is a member of the nations on this planet, and therefore can be affected by the things that happen on this planet. How very observant. How thoughtful, and visionary of them to think this way.

In reality Brexit will have far less of an impact than the continued idiotic, and incompetent policies of the little man in charge.

pack a small suitcase

Why would I want to do that?

Wow. An admission finally, that Thailand is a member of the nations on this planet, and therefore can be affected by the things that happen on this planet. How very observant. How thoughtful, and visionary of them to think this way.

In reality Brexit will have far less of an impact than the continued idiotic, and incompetent policies of the little man in charge.

pack a small suitcase

Why would I want to do that?

AA time for you perhaps?

Why will it depress exports? Pound goes weak which should encourage exports!

Think you should re-read the OP.

Pound weaker=demand for Thai products (exported from Thailand) Down.

Why will it depress exports? Pound goes weak which should encourage exports!

Think you should re-read the OP.

Pound weaker=demand for Thai products (exported from Thailand) Down.

You're correct, my bad!! (in my defence it was silly O'clock in the morning here and I was leaving to walk the dog!)

Despite the exit, Dr Somkid stressed that the 5 percent export expansion projection for this year would remain unchanged

Looks like Somkid has become a company man.

Yesterday the research centre of Kasikorn Bank predicted that Thailand’s overall exports this year would contract by 1.2-4.4% which is equivalent to $21.3-21.7 billion or 74.5-75.9 billion baht.

So UTTC prediction of a 2% contraction may be optimistic. A state investment of 20-50 billion baht is unlikely to compensate for any impacts from the Brexit.