Somkid: Q1 GDP set to growby 2.9% as economy rebounds

Somkid: Q1 GDP set to growby 2.9% as economy rebounds

Deputy Prime Minister Somkid Jatusripitak estimates 2.8-2.9% economic growth in the first quarter. 
(Bangkok Post file photo)
Deputy Prime Minister Somkid Jatusripitak estimates 2.8-2.9% economic growth in the first quarter. (Bangkok Post file photo)

Thailand's economy is estimated to grow by 2.8-2.9% in the first quarter, with tourism and government spending the key drivers, says Deputy Prime Minister Somkid Jatusripitak.

The economy is under control and recovering slowly, as growing tourism and public spending via infrastructure projects help economic growth, said Mr Somkid.

"Economic sentiment has improved as indicated by growing exports in February and March," he said. "I'm not so worried about the farm sector and rural economy as the government implemented myriad projects to raise consumption and ease hardships there."

Thailand's exports grew in February (10.3% year-on-year) and March (1.3% year-on-year) after plunging 8.9% in January.

The National Economic and Social Development Board is scheduled to report on first-quarter economic figures May 16.

Mr Somkid said the tourism sector was promising, shoring up economic growth.

The Tourism Authority of Thailand (TAT) reported foreign visitors in the first quarter totalled 9.03 million, up 15.5% year-on-year, generating 455 billion baht in income, up 18%. Domestic tourists made 37.2 million trips for the period, up 2.2%, producing 204 billion baht worth of income.

For the second quarter the TAT forecasts foreign visitors of 7.87 million, up 13%, creating 375 billion baht in income. Thai tourists are projected to make 37.7 million trips, up 4% year-on-year, generating 204 billion.

Mr Somkid said private investment was improving as applications for Board of Investment (BoI) privileges grew. The BoI reported the value of investment submissions in the first quarter jumped 234% to 89.9 billion baht.

Hirunya Suchinai, secretary-general of the BoI, said recently applications were estimated to reach at least 100 billion baht in the second quarter, leading to annual values to 450 billion baht, up 200% year-on-year. Actual investment is estimated to reach 600-700 billion baht this year.

Mr Somkid said many foreign companies such as Air Asia told him they would establish headquarters here, a sign of confidence. China's Huawei opens its global headquarters in Thailand on May 11.

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