Gross domestic product (GDP) growth of 5.3% year-on-year is expected for the first quarter of the year, Kasikorn Research Centre of Kasikorn Bank (KBank) said on Friday.
The centre said economic growth momentum would further continue in the first quarter on the back of global positive signs after the economic recession risk in the US had been significantly eased.
The centre maintained its previous growth projection for 2013 at 4.5-5.5%, but warned that persistent rising production costs and the strengthening baht could derail this year’s economic expansion.
However, if the government comes up with timely and effective impact minimising measures and in the meantime speeds up investment in its infrastructure development and flood control projects, the economy would be further moblised, with 5% growth expected for the whole year, it said.
The country’s export and production sectors were projected to further improve in the first quarter because the outlook improved when the USA was able to settle its fiscal cliff dispute and China had better than expected economic growth.