Despite public policymakers' confidence of achieving 4% economic growth next year, it remains a challenge because of possible deferral of government infrastructure spending and the fragile global economic outlook, says MBMG Group.
Paul Gambles, co-founder of MBMG Group and director of MBMG Investment Advisory, said it was still questionable that infrastructure development projects would be implemented on time. However, if they were, it would have a positive impact on economic growth prospects.
"For an exporting economy like Thailand, export demand growth from emerging markets has been a difficult story this year and I don't see signs of that getting better next year," he said.
"Austerity in Europe and a lack of real consumer recovery in the US — so that really focuses everything back on how successful the infrastructure projects are."
The Bank of Thailand recently slashed its 2015 economic growth forecast to 4% from 4.8% previously projected.
Despite optimism on the effects of falling oil prices to the US economy, there are a lot of high-yield debts funding the US shale gas boom and it is a risk if there is a default in these high-yield debts accumulated in the oil sector, said Mr Gambles.
Risks of a derail in China's economy is another external factor affecting Thailand and the globe since China's economic slowdown would have a negative implication for many connected economies in the globalised world.
Thailand's swelling household debt is a headwind for domestic consumption as exemplified throughout this year's lacklustre consumption growth, said Mr Gambles, reiterating that government spending on infrastructure projects is vital to jump-start the economy and subsequently trigger other investment effects.
Besides infrastructure investment, reducing the number of people working in the low-yield agricultural sector, improving the agricultural sector's contribution to GDP, and developing value-added renewable energy industries are other selective measures that the government could initiate to enhance income redistribution and drive private consumption forward.
Mr Gambles said delays in Thailand's general election were not expected to cause major foreign investment outflows as the government had been trying to have a consensual relationship with foreign businesses operating in the country.
"One of the things that is likely to cause huge foreign [investment] outflows is any kind of global liquidity problem or a specific [domestic] political problem," he said.
Asian investors, particularly from China and Japan, could reap greater benefits from investing in Thailand if the Western community decides to reduce its incentives to invest in the country because of domestic political uncertainties, said Mr Gambles.
He would not rule out another policy interest rate cut by the Bank of Thailand's Monetary Policy Committee to shore up economic growth momentum if economic conditions continue to remain sluggish, while the move could be regarded as buying time before benefits from the infrastructure project start kicking in.