The World Bank has revised up Thailand’s economy growth this year to 4.1 per cent from its previous estimate of 3.6 per cent given the country’s robust performance. 

The bank has also revised up its forecast of Thailand’s economy in the year 2019 and 2020 to 3.8 per cent for both years, up from its previous estimate of 3.5 per cent and 3.4 per cent respectively.

Meanwhile, the World Bank forecasts global economic growth will remain robust at 3.1 per cent in 2018 before slowing gradually over the next two years as advanced-economy growth decelerates and the recovery in major commodity-exporting emerging market and developing economies levels off.

“If it can be sustained, the robust economic growth that we have seen this year could help lift millions out of poverty, particularly in the fast-growing economies of South Asia,” World Bank group president Jim Yong Kim said.

“But growth alone won’t be enough to address pockets of extreme poverty in other parts of the world. Policymakers need to focus on ways to support growth over the longer run — by boosting productivity and labour force participation — in order to accelerate progress toward ending poverty and boosting shared prosperity.”

Thailand’s economy is expected to grow by 4.1 percent in 2018, the fastest pace since 2012, says the latest edition of the World Bank’s Thailand Economic Monitor.   Thailand’s economic recovery is broadening in 2018.  While rapid export growth continues fueling the economy, an increase in capacity utilization and acceleration in capital goods imports suggest a nascent domestic demand recovery as well. Regulatory reforms and overall policy stability are contributing to continuing improvements in business sentiment.

Thailand cannot attain advanced country status if it cannot meet the challenges of innovation,” said Dr. Kobsak Pootrakool, Minister Attached to the Prime Minister’s Office.

“With economic growth exceeding 4 percent this year, for the first time since 2012, Thailand has the potential, with intensifying structural reforms, to raise productivity and grow even faster over the medium term,” said Ulrich Zachau, World Bank Director for Thailand, Malaysia and Regional Partnerships.  “In addition to education and skills reform and strong implementation of quality infrastructure investments, increasing competition, especially in services, will be key for boosting innovation and lifting Thailand onto a new path of higher, long-term growth.

The new report highlights the importance of innovation for productivity and long-term growth.  Thailand ranked 52 out of 128 in the Global Innovation Index in 2017 has the opportunity, with innovation friendly policies, to attract and foster high-quality entrepreneurs and innovative investments, both within Thailand and from abroad.

Activity in advanced economies is expected to grow 2.2 per cent in 2018 before easing to a 2 per cent rate of expansion next year, as central banks gradually remove monetary stimulus, the June 2018 Global Economic Prospects says. WB raises Thai growth forecast to 4.1 per cent

About the author

Leave a Reply

Sign Up for Our Newsletter

Get notified of our weekly selection of news

You May Also Like

World Bank cuts Thailand’s GDP growth outlook to 1% in 2021

The World Bank has said that Thailand’s economy is forecast to grow 1% this year, down from the 2.2% projected in July, hit by a spike in COVID-19 cases and a delayed reopening to visitors.

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.

Global Community Steps Up with $93 Billion Support Package for World’s Poorest Countries

 The World Bank today announced a $93 billion replenishment package of the International Development Association (IDA) to help low-income countries respond to the COVID-19 crisis and build a greener, more resilient, and inclusive future.