The World Bank has cut its Thai economic growth forecast for 2019 to 3.5% and plans to review the economic outlook again after a new cabinet line-up is announced.
The global lender is gathering economic data and waiting for a list of economic ministers and policies, said economist Kiatipong Ariyapratya.
"The ministers' name list is one of the key factors used to assess Thai economic momentum," he said, adding that economic continuity, particularly in big-ticket infrastructure investments, should be a core policy to support economic expansion.
The World Bank plans to announce its economic growth estimate revision for 2019 next month.
The Washington-based institution downgraded Thailand's 2019 GDP growth outlook to 3.5% from the 3.8% seen in January, according to the bank's "Global Economic Prospects" report.
Last October, the World Bank predicted that Southeast Asia's second-largest economy would expand by 3.9% in 2019.
In the latest report, the bank also trimmed its growth forecasts by 0.3 points and 0.2 points to 3.6% and 3.7% for 2020 and 2021, respectively.
If the World Bank's latest revision bears out, the Thai economy will grow at the slowest pace among Southeast Asian peers with the exception of Singapore this year.
Bank of Thailand officials said recently that GDP would likely expand by less than the 3.8% forecast for this year. The economy grew at the slowest pace in 17 quarters in the first quarter, up 2.8% year-on-year, weighed by the global economic slowdown and an export slump.
Prime Minister Prayut Chan-o-cha on Wednesday evening beat his opponent, Future Forward Party leader Thanathorn Juangroongruangkit, in a 500-244 parliamentary vote to retain the premiership.
After Gen Prayut's appointment, cabinet portfolio allocation is set to be announced in the days to come and the new government is expected to take office later this month.
The "Global Economic Prospects" report said growth in East Asia and the Pacific (EAP) is sluggish, largely due to a deceleration in China.
"Growth in the EAP region is slowing, albeit with notable heterogeneity," the report said. "Regional export growth has declined sharply, while domestic demand remains robust. Inflation has been trending downward across the region and is generally below targets."
Regional growth excluding China is projected to slow to 5.1% in 2019 before inching up to 5.2% during 2020-21 as global trade rebounds.
Domestic demand in Thailand, Vietnam, Cambodia and the Philippines will continue benefiting from favourable financing conditions amid low inflation and rising capital flows, the report said.
The World Bank also expects Thailand and the Philippines to gain from large public infrastructure projects coming on stream during 2020-21.
Another report of the World Bank, "The Digital Economy in Southeast Asia: Strengthening the Foundation for Future Growth", said the region has a unique opportunity to achieve even faster progress by reinforcing the foundations of its growing digital economy.
Regulatory development is a key strength of the regional digital economy. Digital payment is another essential underpinning, but it remains underdeveloped in the region compared with other parts of the world.
In most countries in Southeast Asia, payments are overwhelmingly cash-based.
The World Bank's data shows that only 19% of financial account holders in the region access their accounts via the internet. Implementing robust regulations and a modern digital identification system can help create the enabling environment for digital finance.