Domestic politics are not anticipated to affect the country's economic growth this year because the two main political parties vying to form a coalition government have similar economic policies, says the Bank of Thailand.
Although the two leading parties have opposing political views, especially regarding amending the 2017 constitution, their economic policies are not significantly different, said central bank governor Veerathai Santiprabhob.
Both parties are focused on Thailand's infrastructure investment projects, with the Eastern Economic Corridor (EEC) legislation already in place, said Mr Veerathai.
The EEC is the military-led government's flagship investment scheme, spanning the eastern provinces of Chon Buri, Rayong and Chachoengsao, in a bid to create a hub of technological manufacturing and services connected to Asean by land, sea and air.
On Feb 8, 2018, the National Legislative Assembly passed the EEC Act.
The country's GDP growth is not expected to be affected in 2019, he said.
Greater clarity on new economic policies is needed once a new government is formed, said Mr Veerathai.
"A new government should be formed over the next three months, which is a short period, so this will not affect the economy," he said.
With 100% of ballots counted, the Election Commission reported on March 28 the pro-military Palang Pracharath Party won the popular vote with 8.4 million, topping 7.9 million for Pheu Thai Party. Voter turnout was 75%.
Official election results will be announced by May 9.
Domestic consumption, private investment and tourism will be the key drivers in supporting this year's economic expansion, said Mr Veerathai, adding that these growth engines have been improving from the beginning of this year and continue to have positive momentum.
External risks, however, are expected to put pressure on Thailand's economic growth rather than domestic political factors, he said.
The central bank has revised its economic growth forecast for Thailand to 3.8% in 2019 from 4% previously.
The central bank's Monetary Policy Committee kept the policy rate at 1.75% at its latest meeting in March, after taking internal and external uncertainties into consideration.
The rate-setting panel made a 25-basis-point rate hike in December after leaving the policy rate unchanged at 1.5% since April 2015.
Mr Veerathai said ambiguity on the new government has induced uncertainty in the financial and capital markets, but the baht's movements are in line with regional currencies.
Year-to-date foreign net capital outflows were recorded at US$1.8 billion (57.1 billion baht), mostly from short-term bond outflows, according to the central bank.
