Political turmoil still key risk factor to recovery, says top financier

Supavud Saichue, president of Phatra Securities Plc, said the Cabinet’s decision to invoke the Internal Security Act in Bangkok’s Dusit district during September 18-22 ahead of this weekend’s planned antigovernment “Red Shirt” demonstration showed the political situation in Thailand remains insecure.

Thailand had been engulfed with the political divisiveness for several years. It is considered a key risk factor pressing the investment and economy all along.

Asked to comment on the global economic and financial condition in the post-crisis period, he said the current recovery of the world economy stemmed from increased purchase orders following the suspension of orders during the financial crisis.

Recovery also came from the decision by central banks the world over to inject a substantial amount of money to shore up ailing financial institutions and their weakening economies.

He said the economic fundamentals of the global economy had not yet reached a stable point of balance. Consequently, it remained uncertain the world economy would sustain its recovery because it failed to grow on its own.

Dr. Supavud conceded stock markets around the globe including the Asian and Thai bourses had rallied continuously because investors believed the world economy had begun to recover. (TNA)