TDRI director Ms Kirida Phaophichit attributed the growth figure to government investments in infrastructure projects and low oil prices.
These factors will support the economy this year, she said. She also forecast the tourism sector to expand 15%.
However, factors that could affect the economy are exports and drought crisis.
She said exports should shrink again this year for the third consecutive year due to slow economic recovery of the country’s trading partners.
Meanwhile the ongoing drought crisis will also affect consumption in the agricultural sector and reduce the country’s gross domestic product (GDP) by 0.5 percent or 60 billion baht, she added.
Thailand’s economy slowed in the 2015 final quarter, but growth improved to 2.8% for the year 2015, powered by government stimulus measures and a surge in tourist spending.
Southeast Asia’s second-largest economy grew 0.8 per cent in the final quarter of 2015 from July-September on a seasonally-adjusted basis, less than the 1.0 per cent in July-September and the 0.9 per cent expected in a Reuters poll.
Gross domestic product grew 2.8% from a year earlier in the three months to December, slowing from 2.9% in the third quarter, though slightly stronger than a median forecast of 2.65% by 14 economists polled by The Wall Street Journal.
Thailand relaxes COVID-19 measures to help revive economy
During the past couple weeks, new infection cases have been down from roughly 20,000 daily cases to 17,000 -19,000. Moreover, the number of daily discharges is exceeding infections, which has led to the conclusion that the situation is improving.
Thailand relaxed more virus related social curbs on September 1st, in dozens of cities including Bangkok, in a move that may indicate that the country’s economy, hit hard by COVID-19 will soon revive, lead by the export sector and sound financial fundamentals.(more…)
Southeast Asia to relinquish its lead over Latin America says Moody’s
While the emerging economies of Southeast Asia have outperformed their counterparts in Latin America for most of the past two decades, their lead will slide in the next few quarters as Southeast Asian governments clamp down to fight the pandemic’s lingering second and third waves.
The Delta surge is casting larger clouds over the global recovery and emerging markets are in the thick of it. Despite the ebbing of the coronavirus variant in India, where it first emerged, its spread in Southeast Asia, Africa, and the Middle East has steepened the road to recovery in these regions.(more…)
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