Delay poses risks to the economy

The atmosphere in front of parliament on Thursday morning during a voting session for a new prime minister. Mr Thanavath says if the government formation is delayed beyond October, the budgeting process may be postponed to the second quarter of next year, which could hinder economic expansion. (Photo: Apichart Jinakul)

The University of the Thai Chamber of Commerce (UTCC) expects a prolonged delay in the selection of a prime minister and formation of a new government, leading to protests that, if violent, will significantly affect tourism revenue, causing a loss of 500 billion baht, or a one percentage point decline in GDP.

Thanavath Phonvichai, president of the UTCC, said on Thursday the vote to select the prime minister is considered a crucial indicator of Thailand’s economic recovery, citing recent business surveys by the university that reflect concerns about the prolonged formation of the government, which could delay the implementation of new economic policies for recovery.