BANGKOK, Nov. 15 (Xinhua) -- The World Bank on Thursday called on the future new Thai government to be formed after the December general election -- probably in February -- to take assertive steps to clarify state policies for restoring the country's waning investor confidence and stimulating the sagging economy.
Kirida Bhaopichitr, World Bank economist for Thailand, said the bank projected the Thai economy as growing by 4.3 percent this year, the lowest in the past five years and the lowest in the region, as local consumption and investment had slowed considerably.
The economy next year is expected to expand by 4.6 percent, performing only marginally better than this year, and many risk factors must be closely monitored, the economist was quoted by the state-run Thai News Agency as saying.
The risks include rising oil prices, an accelerating inflation rate likely to stay at 3 percent, a slowdown of exports, baht appreciation and continued political ambiguity.
Kirida said investors and the public alike are waiting to see indications of a clear direction regarding the policies of the new government, which would have an impact on their confidence.
The bank believes that the new government should step up efforts to address the ambiguity of state policies to restore the investor confidence and increase investment urgently as it sees private investment is a key to the country's economic recovery.