Thailand's economic growth still has a chance to reach 4% this year if shipments to Japan and China turn positive by year-end, says Deputy Prime Minister MR Pridiyathorn Devakula.
On his one-year round-up of government performance, MR Pridiyathorn said yesterday despite lingering criticism by several parties that the Thai economy is spluttering, he believed it was well on the way to healthy growth.
He cited myriad economic stimulus measures for both the short and long term to stimulate household consumption and government expenditures.
In the first quarter, statistics showed improved private and public investment, tourism and private consumption, he said.
"The government expects these factors will continue to grow in the second quarter," said MR Pridiyathorn.
"If exports to China and Japan turn positive, economic growth this year is likely to reach 4%."
In the first quarter, Thai exports to China and Japan fell 10% and 5% year-on-year, respectively.
The National Economic and Social Development Board (NESDB) reported on Monday that Thailand's economy grew 3% year-on-year in the first quarter, an improvement from 2.1% in last year's fourth quarter. However, the NESDB cut its full-year growth forecast to 3-4% from 3.5-4.5% and lowered its export growth view to 0.2% from 3.5%.
Exports fell for a third straight month in March while consumer confidence dropped to a 10-month low in April. If exports decline in 2015 it will mark a record third straight year.
Thailand's economic growth between 2008-13 averaged only 2.9% despite a spate of populist policies such as a rice pledging programme and first-time car buyers scheme.
He said baht depreciation would support the export sector over the next three months.
The Prime Minister's Office Minister Suwaphan Tanyuvardhana said as of May 20 the amount of fiscal budget disbursement was 1.503 trillion baht, or 58.73% of the total of 2.575 trillion in fiscal 2015.
The government expects disbursement will reach the targets of 96% of the regular budget and 87% of the investment budget by the end of this fiscal year on Sept 30.