CEOs begin to feel pinch

CEOs begin to feel pinch

Most chief executives of listed companies have become pessimistic about the economic outlook, fearing the country's gross domestic product (GDP) will expand by less than 4.5% this year.

According to the CEO survey on economic outlook for the second half conducted by the Kasikorn Research Center and the Thai Listed Companies Association (TLCA), 57% of the respondents estimated the economy will grow by less than 4.5% this year.

In last December's poll, most of them expected the figure to surpass 4.5%.

The latest poll, conducted among 75 companies in nine industries, indicates the global economic slowdown is taking a toll on Thailand's economic growth.

TLCA chairman Surong Bulakul said economic policy is the main risk of doing business in the next six months, rising from the seventh rank of future risk factors surveyed in December.

Political and social conflict risks are also the main concern of business leaders in the second half.

Mr Surong, who is also PTT's chief financial officer, said foreign investors have voiced concern and asked questions about political risk and the government's economic policies such as the rice pledging scheme and public debt.

The survey also points out that business sectors may delay their investment plans, which could further drag down the country's economic growth.

The assumption is based on the survey's finding that 73% have expansion plans, down from 83% in the previous poll.

As well, 53% said the upward trend in interest rates has not affected their businesses.

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