Delay in the formation of the new government will impact the disbursement of the 2024 national budget, especially investment in new mega projects, which may not be launched, according to Chayawadee Chai-anant, assistant governor for Corporate Relations Group of the Bank of Thailand.
She admits that the current political situation in Thailand is difficult to assess accurately, because of the high degree of uncertainty, particularly as regards the selection of the new prime minister.
She also said, though, that confidence has not been greatly affected, as she pointed out that, in the past, the Thai economy has not been seriously affected, despite episodes of political violence.
She warned, however, that economic activity may get bogged down if the political situation does turn violent or drags on for a prolonged period.
The assistant governor said that the central bank will be monitoring the second sitting of parliament, scheduled on July 19th to select the prime minister, closely.
She disclosed that the central bank has assessed the political situation based on several scenarios, to determine their impacts on the economy.
For the time being, the central bank is forecasting economic growth this year at 3.6% and 3.8% next.
Source: Thai PBS World