Thai economy may be affected by chaos

Analysts say the protest is unlikely to topple the government. But it is causing economic concerns. Thailand is recovering well from the ravages of the global downturn, but the country's assets are still undervalued as political uncertainty weighs on the economy.

Thailand has been in a state of constant political turmoil since early 2006.

In the past three years, the consumer confidence index has stayed under the 2006 level.

The Ministry of Tourism and Sports has reported that there were just over 14 million foreign tourists to the country in 2009, down 3 percent from 2008. This earned the country a total of 16.1 billion US dollars, down 8 percent from the previous year.

Analysts say the new round of protests by the United Front for Democracy Against Dictatorship could lead to more instability that could impact growth and dent Thailand's investment image.

The country's economy declined 2.3 percent last year. But the government now predicts the economy could see a 4 and a half percent increase this year.

Statistics show foreign investors have snapped up about 500 million US dollars of Thai stocks since January, with most of the buying in recent weeks.

But despite the new protests, Prime Minister Abhisit Vejjajiva is widely expected to survive the showdown.

According to law he must dismiss the parliament before December, 2011 and hold a new round of elections.