FTI foresees only 2% growth rate in 2014
The Federation of Thai Industries forecasts the 2 per cent growth in gross domestic product for 2014.
Tanit Sorat, a vice chairman, said that the FTI believed that the countryâ€™s "failed state" condition would remain in the first six months, without any active government. The forecast is low mainly to due to the prolonged political conflicts which dampen consumption sentiment as well as investment.
This would dampen the sentiment for domestic spending and investment.
"We see that there would definitely be no new government to administer the country in the first six months of this year. There would be many by-elections before the new government could be formed. This means there would be no measures to stimulate the economy," he said.
He admitted that the emergency decree has hurt investment sentiment among small and medium-sized enterprises. However, the logistics remain smooth as the government has not yet announced a curfew.