Thai GDP slows

Following Thailand’s slowest growth in over eight years, as a result of the global economic slowdown, the government faces increased pressure from protestors who are calling for greater action to be taken.

Ampon Kittiampon, the secretary-general of Thailand’s economic advisory board, advised that the government needs to take swift and decisive action in order to survive. However, with growth expected to fall below 3 percent, it means that the government is not able to function efficiently.

Yesterday, thousands of protesters descended on the capital to place greater pressure on lawmakers in order to take further action and stimulate the economy.

It is hoped that the central bank will take action by reducing interest rates next week as many companies such as Thai Airways are having to make cutbacks, resulting in job losses in order to survive.

The SET Index of stocks has fallen 2.9 percent, which is the greatest single fall since the last economic crisis, back in 1997.

The baht has fallen for the fifth consecutive day against the dollar and is likely to get weaker still as exports fall, as well as a drop in tourism, which has caused consumer confidence to fall to its lowest level in 2008.

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