Thailand: Boonrawd Brewery Co. expects economy to pick up after general elections

The Thai economy is expected to pick up in the remaining four months of this year if the October 15 general election is successfully held and the new government’s policy is clear, according to a local giant brewer Boonrawd Brewery Co., MCOT News released August 21.

Boonrawd Brewery Co’s President Santi Bhirombhakdi projected August 19 that the country’s economy would grow 4 per cent this year and economic conditions in the rest of the year would not deteriorate.

Should the general election be held and the new government’s policy be unambiguous, it would help restore confidence, particularly among foreign investors who are deliberating investment in Thailand, he noted.

“The Thai economy in the rest of the year will neither expand nor contract. Actually, it may pick up if there is the general election on October 15 because it helps boost investor confidence," he forecast.

“The sooner the election is held, the more confidence investors have gained. A proposed postponement of the election for one month depends on a discretion of the new Election Commission (EC), which is being selected,” he said.

For the economic trend next year, Mr. Santi noted, global oil prices would remain a key pressing factor because it could rise further to US$90 per barrel if the Middle-East tension persisted.

He said higher oil prices had affected overall product prices since they fueled transport costs.

He conceded that the stronger baht to around 37 a US dollar had made export-based revenue decline to a certain extent.

Still, since the company’s export portion accounts for 4 per cent of total products, the firm has not been adversely affected, according to the company's president.