BANGKOK, 3rd June 2018 (NNT) – TMB Analytics has raised this year’s economic forecast following a number of positive factors.
TMB Analytics has adjusted Thailand’s economic growth forecast from 4.2 percent earlier this year to 4.5 percent in response to the International Monetary Fund’s global economic forecast of 3.9 percent. The National Economic and Social Development Board (NESDB) recorded the gross domestic product (GDP) of this year’s first quarter at 4.8 percent.
Analysts say a hike in fuel price on the world market has put up the prices of fuel-dependent commodities, including agricultural products, which represent 25 percent of the country’s export value. They predict the country’s exports will rise to 8.6 percent this year.
The domestic economy is also trending upwards. The private sector’s investment is anticipated to gain momentum as seen from the continued import of capital goods such as machinery throughout six quarters and increased manufacturing capacity of the chemical and automotive industries.
The release of the Eastern Economic Corridor (EEC) Act, which aims to ease investment limitations has strengthened the private sector’s confidence. State investment projects have also benefited the economy despite a slowdown in budget spending.
Foreign tourist arrivals, whose number is predicted to rise by nine percent to above 38 million this year, still play a key role in the economy, though most of their cash will likely be spent in popular provinces rather than in lesser known regions.
The private sector is also showing signs of increased consumption, as seen from higher purchases of durable goods after the conclusion of the first car scheme. A revenue growth of the agro-sector resulting from sales of economically important commodities such as rice, tapioca and palm oil are also stimulating consumption.
Source: National News Bureau of Thailand (NNT) National News Bureau & Public Relations : http://thainews.prd.go.th
Reporter : Kitti Cheevasittiyanon / Rewriter : Rodney McNeil