Political Situation
Since political situation descend under control by military one of the main contracts was that it would restore the country's economy, but support for the government has taken a blow in the face of weakening economic forecasts. Most notably, the economy grew a mere 0.7% in 2014.
What is more, ADB has recently lowered predictions for Thailand’s growth from 3.6% to 3.2%, contracted for product exports and continued to deterioration in the consumer confidence decreased. To make matters worse, the Bank also cut projections for inflation from 2% to a deflationary rate of -0.4% at the same time, Thailand is facing the worst drought in over a decade, and the Finance Minister Sommai Phasee says the drought could cut GDP by 0.5%. In an attempt to spur spending, the government has decided to freeze VAT at currently levels of 7% until September 30, 2016.
Indeed, one of the few pieces of good news is the return of tourism, which counts for approximately 10% of the Thai economy. While tourism slump between 2013 and 2014 as a result of the political crisis, numbers are rising and the Tourism board even predicts a record number of tourists for 2015. the political crisis, but fear and tourists have visited Thailand normally .