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Free-trade talks with Japan and the U.S. are also postponed until the political situation turns better.
On a quarter basis, GDP grew to 1% compared with 0.8% in the first quarter. But on an annualized basis, growth in Thailand has slowed. The forecast for 2006 GDP growth has been narrowed from between 4.2% and 4.9% to between 4.2% and 4.7%. The Thai economy is 4.5% in 2005, slowing from 6.2% in 2004. Central bank Gov. Pridiyathorn Devakula implied that fiscal stimulus is the best way to boost economic growth for now because global rates are still rising and inflation remains a concern.
Analyst said that the political uncertainty has affected business confidence and investment...
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