Kasikorn Bank Chairman Says Political Instability Dangerous for Thailand’s Economic Recovery

Red shirt protests in Bangkok – copyright Takeaway, Creative Commons license

As political instability in Thailand continues, as it has since the coup that overthrew elected Prime Minister Thaksin Shinawatra in 2006, Kasikorn Bank Chairman, Banthoon Lamsam said today it is now a major risk factor that could derail Thailand’s economic recovery.

In fact, as Thailand’s political instability continues to grow with the PAD demonstrating against the Pheu Thai government constantly, and red shirt groups demonstrating against lese majeste charges and against the elite still holding tightly to power, Thailand looks increasingly unstable.

Coup rumors also continually come up, with many Thais still convinced there will be another military coup in the not too distant future.

With both Thai and foreign investors nervous about investing in Thailand, the economy isn’t likely to grow particularly fast. Things are simply too uncertain.

Kasikorn Bank Chairman Mr Banthoon went on to say political conflict must be solved if Thailand is going to be able to move forward economically.

He believes the crisis in the eurozone will have only a small negative impact on the Thai economy, and thinks the political instability in the country is far more damaging.