In response to a drop of consumer confidence, Finance Minister Apisak Tantivorawong, said he believed actual consumption would remain positive for the first and second quarters of this year.
“Just wait until the National Economic Social Development Council releases actual figures,” he said at the close of Asean Finance Ministers’ and Central Bank Governors’ Meeting in Chiang Rai on Friday.
The Consumer Confidence Index dropped to 80.6 in March, the first drop in the past three months, as consumers were nervous about the adverse impact of the political situation, and a slowdown of local and global economies, according to the survey conducted by the University of Thai Chamber of Commerce which released the survey on April 4.
Apisak, however, said that he was more concerned about a delay of new private investment. “We have learned from many investors, in particular foreign investors, who say that they will wait until the political uncertainty becomes clear,” said Apisak.
He said it did not surprise him because the government had been aware of the impact of political uncertainty so the government accelerated public investment in infrastructure projects in order to shore up economy during political transition.
“We did not want the economy to sharply slow down because if so, it needs a lot of resources to pull the economy back on track, shoring up the economy uses fewer resources,” he said.
Unofficial results of general election on March 24, suggested that no single party won a majority and the election was marred with many irregularities, leading to doubt about which political parties would form a new coalition government.