Thailand's economy is expected to grow more than 3% in the first quarter, driven by recovering tourism and private consumption as well as accelerated government expenditure, says the government's planning agency.
The National Economic and Social Development Board (NESDB) reported yesterday at the economic ministers' meeting that the government's planned spending measures are expected to fully bear fruit and stimulate the economy by the late second or early third quarter.
NESDB secretary-general Arkhom Termpittayapaisith said during the period over 100 billion baht is slated to be disbursed, including 40 billion for road construction and repairs, 17 billion for water management, and 15 billion in low-interest loans to small and medium-sized enterprises.
Prime Minister Prayut Chan-o-cha also instructed the Agriculture Ministry yesterday to work out new measures to subsidise production costs for the farm sector, starting from July when new crops are scheduled for harvest.
"We expect a gradual economic recovery after growth accelerated more than expected in last year's fourth quarter," said Mr Arkhom. "The key drivers will be tourism, government investment and domestic consumption."