A Citibank economist predicts the country’s gross domestic product (GDP) growth for 2013 will be 4.7%, and should increase to 4.8% in 2014.
Haren Shah, Citi Asia Pacific director and senior investment strategist of Citibank, said on Thursday the economy would probably slow down in the second quarter of the year on the back of a decline in domestic consumption and private investment.
However, the economy would grow in the second half of the year, boosted by the government’s investment in infrastructure development and water resources and flood management projects, he said. Exports would also improve in the second quarter of the year, in line with the recovery in the US economy.
Mr Shah said he expected exports to grow by 6.2% and imports to increase by 6.3% this year.
Annual domestic consumption was expected to expand by 3.6%, private investment would grow by 7.2% and inflation would stay at a low level at 3.6%, he added.
Economic recovery in the US was boosting the Thai capital market, he said, and the Thai bourse had already passed its 1,300 low-point, showing the stock market would be in a recovery period over the next six months.
Citibank still maintains its SET index target at the end of 2014 at 1,535 points, he said.