United Nations economists predict Thailand's economy can grow, stating that gross domestic product has the potential to reach 4.7 percent next year provided the new government maintains stability.
Following the September 19 coup that overthrew the Thaksin government, UNESCAP economists said Friday that they there have been no changes in the country's economy. The Thai stock market and currency - the baht - is stable, they said.
â€œIn our â€˜best-case scenario,â€™ we expect public spending to increase under the new interim government and play a key role in boosting GDP growth,â€ said the UN Economic and Social Commission for Asia and the Pacific, Executive Secretary Kim Hak-Su.
â€œThailandâ€™s macroeconomic fundamentals remain strong. We expect growth to be robust at 4.5 per cent this year. Exports are strong and inflation is falling. The relatively flexible exchange rate regime and high foreign exchange reserves have contributed to these good outcomes,â€ Hak-Su added.
Economists predict that if the country's current political stability is not maintained, the GDP could drop down to 3.1 percent next year.