BANGKOK: — Thailand’s real economic sector has begun to experience tangible impacts from the financial crisis in the United States, as many entrepreneurs have closed their businesses due to reduced liquidity, according to a top economic forecaster.

Thanawat Palavichai, director of the University of the Thailand Chamber of Commerce (UTCC) Economic and Business Forecasting Center, said that its survey of the Thai economic situation in the fourth quarter of this year found that the US economic crisis had not adversely affected the Thai economy.

Despite that assessment, Dr. Thanawat went on to say that clear signs of business slowdown are seen because entrepreneurs are uncertain about the future economy, particularly that of next year.

Should the economy expand less than 3.5 per cent in the fourth quarter, overall Thai economic growth for this year is likely to be in a range of 3.5-4 per cent.

It bodes ill for economic conditions next year with the ranks of Thailand’s unemployed very likely to increase by one million.

To prevent such an unfavourable situation, he said the government must attempt every possible concrete measure o drive the economy ahead in the remaining two months of this year.

Dr. Thanawat advised the Bank of Thailand to cut the policy interest rate by 0.5-1 per cent, keep the baht moving at 35-37 to the US dollar, and oversee diesel fuel prices to ensure it stays at 26 baht per litre.

In addition, it should more quickly distribute the budget, implement construction of long-planned mega-projects, and promote tourism.

Should these measures work, the gross domestic product (GDP) could grow at least 4.5-5 per cent this year and at the same rate next year.

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