Thailand's economy in the second half of this year will expand more satisfactorily than that of the first half of the year because there is a clarity on the constitution draft and the general election, according to a top banker.
Kasikornbank Plc president and Chief Executive Officer Bantoon Lamsum conceded the economy had slowed down to a certain extent due to political uncertainties. But the sluggishness had not deteriorated to a worrying level.
He said the continued rally in the Stock Exchange of Thailand index showed investors still had confidence in Thailand.
In addition, Mr. Bantoon believed that Thailand’s property sector would not experience a bubble burst although many real estate projects had popped up.
The banker said he viewed property developers had surveyed a consumer demand before deciding to launch their projects. They found the demand remains enough for the supply.
He said the current property situation is different from the past bubble burst.
At that time, property developers launch projects arbitrarily and found later that they could not be sold. Some developers sought bank loans for a speculative purpose.
Currently, he said, commercial banks had attempted to manage risk. Should they know any loan applications be made for speculation, they would not approve them, Mr. Bantoon said.
Source: MCOT
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