GDP target being reviewed

 Suchart said that the third-quarter GDP could be below 5 per cent while the annualised growth could be 5 per cent. He noted that domestic economy has been weighed down by political conflicts, which has hurt consumer confidence and investor confidence. Meanwhile, the tourism industry has witnessed the spillover effect. However, he is confident that exports would remain buoyant, as the Thai baht remains weak at Bt35 per US dollar.

 He said that the business community has been affected by liquidity shortages amid higher interest rate.

 "The government may need to come up with more short-term measures, as it would take a year for confidence to return to normalcy," he said.

 Pannee Sathavarodom, director-general of the Fiscal Policy Office, said that it is likely that the Thai economy would expand at a lower growth rate, as exports is the only engine that boosts the economy.

 "We'll review the annual economy late this month. Then, we would take into account the economic condition in September, to see how the political conflicts hurt consumption and investment. If consumption and investment is affected, it would leave consequence on the annual GDP."

 The Fiscal Policy Office in June decided to keep its 2008 GDP growth projection at 5-6 per cent.