Economic growth projected at 3.6% this year

Economic growth projected at 3.6% this year

Workers take part in a skills contest in Narathiwat province on Wednesday. It was organised as part of the government's attempts to boost economic development. The Finance Ministry expects the Thai economy to grow faster this year. (Photo by Waedao Harai)
Workers take part in a skills contest in Narathiwat province on Wednesday. It was organised as part of the government's attempts to boost economic development. The Finance Ministry expects the Thai economy to grow faster this year. (Photo by Waedao Harai)

The economy is expected to grow 3.6% this year, up from 3.2% last year, boosted by increased demand for Thai exports and government expenditure, the Finance Ministry said on Thursday.

Spokesman Krisda Chinavicharana said exports were growing faster than expected due to the improving economies of trading partners.

Government spending continued to be a major driver of the economy, he said. The  government increased its fiscal expenditure by 190 billion baht in 2017, up from 2.73 trillion baht, and was investing in mega- infrastructure projects.

Private investment would gradually increase as interest rates remained low. Farmers were earning more money due to increases in global commodity prices and farm yields. Consequently private consumption was expanding, Mr Krisda said.

The economy remained stable, with headline inflation expected to run at 1.4% this year based on the increasing price of crude oil. The country should post a current account surplus of US$39 billion this year, equivalent to 9.2% of gross domestic product, he said.

Mr Krisda said risk factors included the economic situations of trading partners, fluctuations of money markets, uncertainty in the international economic policies of the United States, European politics, and international conflict. 

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