Despite the prolonged political conflict, business leaders remain confident that any effects are unlikely to be as great as those caused by the 1997 financial crisis.
Isara: Recovery in second quarter
"The economy has been facing an internal problem, but this problem is still manageable and not as immense as the 1997 financial crisis that hit the country's overall economy hard," said Chartsiri Sophonpanich, chairman of the Thai Bankers’ Association, after a meeting of the Joint Standing Committee on Commerce, Industry and Banking yesterday.
"Rather we're concerned about Thailand's long-term competitiveness and how the country can outpace competitors in Asean and elsewhere in Asia."
Mr Chartsiri said domestic spending had slowed due largely to a lack of new spending from the government sector, but economic conditions were expected to recover in the second quarter, in line with growing exports boosted by the global economic recovery.
Isara Vongkusolkit, chairman of the Thai Chamber of Commerce, said the economy was expected to recover in the second quarter as exports start showing positive signs and investment resumes after the caretaker government was given approval to set up a new Board of Investment.
However, both men expect overall economic growth to come in below 3% this year, as political problems remain far from being settled. The impact may expand to countries whose economies rely on the Thai economy through border trade.