source: Reuters July 16 2008
- BANGKOK (Thomson Financial) - Investor confidence in Thailand has fallen by 38 percent since the beginning of the year, according to ING bank's investor sentiment index released Tuesday.
Its survey showed a drop from 131 points for the first quarter to 81 points for the second quarter, against a backdrop of reduced optimism throughout the region. Pan-Asian sentiment fell by 13 percent over the same period.
'An unstable political landscape, rapidly rising inflation and volatile food prices have all contributed to the lowest reading of investor sentiment that we have seen in several quarters,' said Maris Tarab, ING's CEO.
Thailand on Tuesday announced a new 46-billion-baht ($1.36-billion) economic stimulus package to aid the nation's poor in the face of rising living costs.
Inflation in the Southeast Asian nation is currently at its highest level since the 1997 financial crisis, hitting 8.9 percent in June amid warnings that it could reach double digits this month.
The Bank of Thailand is widely expected to raise interest rates at its monetary policy meeting on Wednesday in a bid to rein in inflation.
Thailand's cabinet in March already approved a 40-billion-baht ($1.3-billion) package of tax cuts and other measures to shore up the kingdom's flagging economy.
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