Economic growth is projected at 4.5% this year, propelled by continued public investment, with a lower current account surplus attributed to higher imports and investments, says Standard Chartered Bank Thai.
The upcoming general election is expected to be a smooth transition of power from the military-led government to an elected parliament, which should boost sentiment among consumers and investors, said economist Tim Leelahaphan.
"Whatever political party sets up a government, we expect economic policy will not change much because many investment projects have already been implemented. We expect the structural policy to continue under the new government for a couple of years, regardless of the election outcome," said Mr Tim.
"Megaprojects, seen as a key growth driver, are projected to remain on track as the new constitution calls for continuation of the military-led government's development plans."
With an improved domestic political outlook and strong economic parameters, the country's sovereign credit rating could see an upgrade by 1-2 notches after the election, he said.
The economy grew by 3.3% year-on-year in the third quarter after expanding by 4.6% and 4.9% in the second and first quarters of 2018.
The National Economic and Social Development Board will announce official GDP growth data on Feb 18.
Mr Tim said Thailand's peak years of a strong current account surplus will become a thing of the past as higher investments and imports will result in a lower surplus.
The current account surplus is anticipated at 5% of GDP this year, said Standard Chartered Bank Thai.
Thailand's current account surplus was logged at 3.4% of GDP in last year's third quarter, down from 5.3% and 11.7% registered in the second and first quarters, respectively, according to Bank of Thailand data.
Foreign capital is expected to move into Thailand's capital market before the general election takes place, but such funds could move in the opposite direction after the election if the leading political party does not have a majority vote to form a government. There could also be instability after the government formation, said Mr Tim.
The end of monetary stimulus programmes by major central banks, rising protectionism, political uncertainty in Europe and oil price fluctuation are identified as risk factors affecting global economic growth in 2019, he said.