BANGKOK, March 6: Thailand on Monday cut its economic growth forecast for 2006 due to the political turmoil over the leadership of embattled Prime Minister Thaksin Shinawatra and following a December quarter slowdown.

The economy is expected to grow by 4.5-5.5 per cent this year, down from an earlier projection of 4.7-5.7 per cent, the government’s economic think tank, the National Economic and Social Development Board (NESDB), said.

“Due to political uncertainty, foreign investors’ confidence in investing in Thailand is likely to decline,” NESDB secretary general Ampon Kitti-ampon told reporters.

“If the situation continues until after June, it will affect the country’s economic fundamentals,” he said.

Thaksin, battling allegations of corruption and abuse of power, has been the target of tens of thousands of protesters demanding his resignation at four mass rallies in as many weeks.

The revision was made as think tank also announced the Thai economy expanded 4.7 per cent year-on-year in the three months to December, compared with 5.4 percent in the previous quarter.—AFP