Thai Economy Posts Strong Growth
3 years of stable Government has helped the Thai Economy rebuild.
The Thai economic outlook for 2017 : It is expected that the Thai economy will grow by 3.3 – 3.8 percent, supported mainly by
(i) the recovery of the export in tandem with the pickup of key trading partners’ economies and the global commodity prices,
(ii) the high and accelerated growth of public investment,
(iii) the acceleration of the agricultural production and favorable agricultural prices,
(iv) the favorable expansion of the tourism sector which continually support the overall economy, and
(v) the improvement of domestic car market.
It is expected that the export value of goods will expand by 3.6 percent, private consumption and total investment will grow by 3.0 and 4.4 percent respectively. The headline inflation will be in the range of 0.8 –1.3 percent and the current account will record a surplus of 8.9 percent to GDP.
The government raised its export outlook for 2017, suggesting the recovery was gaining traction, but Southeast Asia’s second-largest economy faces rising global trade protectionism and capital outflow risks as the U.S. Federal Reserve prepares to hike rates again this year.
Gross domestic product grew a seasonally adjusted 1.3 percent in the first quarter from the fourth, aided also by household holding and tourism, the National Economic and Social Development Board (NESDB) said on Monday.
From a year earlier, growth was 3.3 percent, also slightly better than a median forecast of 3.2 percent, and the 3.0 percent in the final quarter of last year.
Exports in the first quarter jumped 6.6 percent from a year earlier and household spending increased 3.2 percent while overall public and private investment rose 1.7 percent, NESDB data showed.
The central bank has left its benchmark interest rate unchanged at 1.50 percent since April 2015. It next reviews policy on May 24, when most economists expect no change. Changes in US Interest Rate Policy and strong economic growth will add pressure for a rate increase towards the end of the year.