Thailand is expected to experience 2.3 percent economic growth in 2014, according to a revised forecast by Kasikorn Research Center.
The Bangkok-based research firm, which had originally predicted a growth rate of 1.8 percent earlier this year, has raised its forecast following the May military coup, which put an end to nearly seven months of anti-government protests.
The political turmoil in the lead-up to the military coup had a negative impact on Thailand’s financial stability and economic performance, scaring off foreign tourists, slowing investment into the country and souring business sentiment and consumer confidence. Thailand’s GDP saw its first yearly contraction since late 2011 in early 2014, with Q1 GDP contracting by 0.6 percent year-on-year or 2.1 percent quarter-on-quarter.
The military junta, known as the National Council for Peace and Order (NCPO), quickly implemented a series of measures to boost Thailand’s economy and restore consumer and corporate confidence following the deposition of the government. Since it was formed on May 22, the NCPO has cut diesel prices, expedited the approval of investment projects, accelerated spending and paid arrears of US$3.57 billion owed to around 800,000 rice farmers under a state purchase scheme.
