The Joint Standing Committee on Commerce, Industry and Banking predicts one or two percentage points will be shaved off economic growth if the political turmoil lasts for several more months.
The private sector has expressed concern that the ongoing political impasse, which has taken a bite into domestic consumption and investment, will also affect foreign direct investment, Payungsak Chartsutipol, chairman of the Federation of Thai Industries, said after the meeting yesterday.
The central bank earlier predicted that 2014 gross domestic product (GDP) growth could be lower than the 3% figure for 2013.
The political turmoil will aggravate already-ebbing domestic investment and consumption amid the weak economic momentum from last year.
Local business operators have slowed raw material and machinery imports, while foreign investors have put their focus on neighboring countries, and this could weaken Thailand's competitiveness in the long run, said Mr Payungsak.
Small and medium-sized enterprises are feeling the pinch from the unusual situation.
Chartsiri Sophonpanich, chairman of the Thai Bankers' Association, said each bank is ready to provide financial assistance to customers spanning additional liquidity support and loan condition easing on a case-by-case basis.
Asset quality of the banking sector remains positive.