THAILAND's economy, South-east Asia's second largest, typically shows remarkable resilience to political turbulence, but there are factors this time around that suggest the ongoing unrest could exacerbate already softening business conditions.
Consumer spending has slumped this year and exports, worth US$366 billion, are flagging amid weak global demand. The government had pinned its hopes on offsetting those losses with 22.3 per cent growth in tourism, a sector accounting for 9 per cent of gross domestic product (GDP), and big infrastructure spending. That could be wishful thinking. About 16 billion baht (S$626 million) has been lost through holiday cancellations this month alone, just as peak season begins, says the Tourism Ministry.