The Federation of Thai Industries (FTI) is optimistic that the domestic economy in 2019 will gain from the general election and public investment, even as the trade spat between the US and China pressures the country's export outlook.
Chairman Supant Mongkolsuthree said the general election will move the country forward and boost confidence among business operators.
"Domestic sentiment seems to have eased up, while the current government is upbeat about its megaprojects to stimulate Thai economy," Mr Supant said.
The FTI on Tuesday reported that the Thailand Industries Sentiment Index in October reached 92.6 points, up from 91.5 in September, due to greater purchasing power in the fourth quarter.
Mr Supant said large and mid-sized companies were more confident about purchase orders in the fourth quarter.
"Operating costs were better thanks to declining oil prices," he said. "Moreover, natural disasters had less of an impact for overall shipment transport, and there was new movement in megaprojects such as terms of reference for infrastructure in the Eastern Economic Corridor."
Citing figures from the Joint Standing Committee on Commerce, Industry and Banking, Mr Supant said GDP in 2018 is expected to grow by 4.4-4.8% as exports expand 8-10%, while the inflation rate is projected at 0.9-1.5% for the full year.
He said shipments are still suffering from the brewing trade war, with the two litigant countries failing to come to an agreement at the Apec Leaders' Meeting in Papua New Guinea.
"Both countries have fought on with aggressive policies, which will affect the global economy in 2019," Mr Supant said.
Separately, the chief executive survey by the National Institute of Development Administration (Nida) found that 74% of 110 executives expect the Thai economy to grow between 1% and 5% in 2019.
For the industrial sector in 2019, 64.3% of executive respondents forecast an expansion of 1-5% in line with the country's GDP growth.
According to 71.8% of respondents, the general election will foster greater investment confidence and improve the country's reputation.