The Bank of Thailand may upgrade its current GDP growth forecast of 3.9% for 2018 because state investment is expected to provide a larger boost, says a senior official at the central bank.
Policymakers have a brighter view of the year's economic prospects, as seen by the fact that the Fiscal Policy Office (FPO) recently raised its growth estimate to 4.2%.
The Bank of Thailand will wait for economic data in February and March before making a decision on whether to revise up the economic growth forecast, said Don Nakornthab, senior director of the economic and policy department.
The central bank "is likely to raise the growth forecast, as the current estimate has not taken the supplementary budget into consideration", Mr Don said.
The cabinet recently approved a supplementary budget of 150 billion baht for this fiscal year.
Domestic demand led by investment from both the public and private sectors will lend support to economic growth, Mr Don said.
The Bank of Thailand expects growth of 9% in public investment, 3.2% in public consumption and 3.1% in private investment in 2018.
The FPO on Monday raised its economic growth forecast for the year to 4.2% from 3.8% seen in October last year.
The office revised up its 2018 growth outlook for public investment to 11.8% and raised its estimate for exports to 6.6% from 5.7% earlier. The FPO also upgraded its private investment growth view to 3.8% from a previous forecast of 3.4%.
The central bank has said exports and tourism remain the key factors to drive economic expansion this year, though their growth rates are likely to be lower than last year's because of a high-base effect.
The bank forecasts export growth of 4% in 2018.
The bank said private consumption contracted by 0.4% in December after 1% growth in the previous month, while private investment growth stood at 0.2% after November's 0.4%.
Exports rose by 9.3% year-on-year in December.
The central bank forecasts GDP growth of 3.9% this year, below the FPO's latest forecast of 4% (which would be the fastest pace since 2012) but in line with the view of the National Economic and Social Development Board (NESDB), the government's think tank.
The NESDB is due to announce the official 2017 GDP data on Feb 19. Thai GDP grew 3.2% in 2016.
Thailand continued to run a current account surplus of 121 billion baht in December after a surplus of 166 billion in November.