Despite Thailand’s political chaos the majority of foreign investors have yet to withdraw their investments from the country, according to the Bank of Thailand (BoT).
Governor of the BoT, Prasan Trairatworakul, said he is optimistic that foreign investors will remain confident in Thailand, given the nation has neither high inflation rate nor current account deficit, adding that the Kingdom also has flexible currency exchange system with strong financial institutes and sufficient financial reserve.
However, if the political issue persists, several problems such as the rising costs of loans and logistics will ensue.
The December 2013’s Business Confidence Index was at 45.0, dropping from the 46.9 points reported in November. It is the sixth consecutive month that the index had declined, and is the lowest since the 2011 floods.
According to the report issued by the Public Relations Department of the Royal Thai Government, the declining index was a direct result of the decreasing in both industrial and non-industrial sectors’ confidence, evinced by the lower number of local and international purchase orders and falling in revenue as well as higher cost of production.
Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg
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