Some 70% of small and medium-sized enterprises (SMEs) expect their revenue to drop this year compared to 2013 due to the political unrest, reports a survey by the Federation of Thai Industries (FTI).
Among the 350 SMEs surveyed last week, none said their revenue this year would increase compared to 2013, while 10% said revenue would remain flat. Around 20% of the participants predicted their revenue would drop slightly, while 70% expect a significant decrease in revenue.
The results are in line with the FTI's latest Thai Industry Sentiment Index (TISI), which showed industry confidence fell to its lowest level for 25 months in December.
FTI vice-chairman Tanit Sorat said it anticipated GDP would grow by 2-2.5% this year because of low domestic consumption and foreign direct investment.
"It will take at least six months until a new government is set up, so there will be no government spending during that period," said Mr Tanit. "And because a new Board of Investment has yet to be named, there are questions as to whether new promotional privileges would be approved. If we do not establish privileges, investors may look to other countries, especially in labour-intensive sectors."
"Despite the traffic and increased oil usage, we still cannot pass higher logistics costs on to customers, so prices are static,'' said Mr Tanit.