Economic growth in the second quarter is expected to stay at the same level as the first quarter as there are no signs of any notable factors to boost impetus, says a senior Bank of Thailand official.
Public expenditure and the service sector still function as growth drivers, while global economic conditions in the second quarter are not projected to deteriorate if there is no unexpected occurrence on the global stage, said Roong Mallikamas, a senior director of the macroeconomic and monetary policy department.
Despite the second quarter being a low season for tourism, expansion in this sector is expected to continue pushing the economy forward, she said.
GDP growth hit a three-year high of 3.2% year-on-year in the first quarter, up from the final quarter's 2.8%, mainly attributed to government stimulus measures and rapid improvement in the tourism sector.
The economy expanded by 0.9% quarter-on-quarter on a seasonally adjusted basis, up slightly from 0.8% registered in the last three months of 2015.
The central bank forecasts this year's GDP growth at 3.1%, with exports contracting 2%.
Mrs Roong said downside risks included domestic politics, China's economic slowdown and Britain's upcoming referendum on whether to withdraw from the EU.
Private investment, meanwhile, remains low and investments have been concentrated in the telecommunications and renewable energy sectors, she said.
"Private investment has not been broad-based [and] we are waiting for investment to expand at a higher level and become more broad-based," said Mrs Roong.
Low private investment could affect this year's economic performance and the impact could continue into forthcoming years, denting Thailand's competitiveness and causing delays in adopting new technological innovation, she said.
Thailand has seen a low level of private investment over the past decade, she added.
But it is understandable that private investment remains low because there is an excess of capital utilisation, standing at 65% in April, and the private sector is waiting for clearer signs of economic recovery in foreign countries to jump-start investment, said Mrs Roong.
The Private Investment Index grew by 1.4% year-on-year in April, up from March's 1.2%, but recorded flat growth month-on-month on a seasonally adjusted basis, central bank data showed.
Spending on non-durable goods slightly improved but households remained cautious about spending on the back of fragile consumer confidence and subdued purchasing power.
Consumption of durable goods continued to contract in April, mainly attributed to a decline in car sales after such purchases were already made at the end of last year, she said.
Farm income also remained low as a result of the drought in spite of some improvement in April's rubber prices compared with the previous month.
The Private Consumption Index expanded by 5.5% year-on-year in April, up from March's 3.9%, but registered a 0.2% contraction in terms of month-on-month expansion on a seasonally adjusted basis, according to central bank data.