The Thai economy in 2014 expanded only by 0.7 percent, owing to internal and external constraints that
inhibited growth. In the first half of the year, the economy experienced zero growth as political situation
hindered certain government operations and undermined the confidence of households, businesses and
foreign tourists. An elevated level of household debt contributed to restrained consumer spending as well as
to cautious lending by financial institutions. Recovery of merchandise exports was slow due to a gradual
improvement in global demand. In addition, Thai manufacturers still suffered from limited production
capability in high-technology products. Under these circumstances, businesses delayed production and
new investment.