Thailand’s exports in December, 2011 are expected to have fallen by another 10 percent after the country’s devastating floods caused closure of seven industrial estates. Figures to be released this afternoon should confirm that.
But most experts believe the Thai export rate will pick up in the short-term. Long-term, of course, will depend on political stability and on investor confidence, as many foreign businesses lost millions of dollars in the floods.
Analysts are saying, short-term, production problems caused by the flooding of seven industrial estates in Thailand will ease and Thailand’s exports will get back to a somewhat normal level.
For the long-term though, foreign investors will be watching closely to see what the government does to minimize damage to investors should any future floods occur.
This will have an impact on growth over the long-term, until investors believe the necessary safeguards are in place and foreign businesses can feel comfortable investing in Thailand again.