Thailand's Economic Growth Could Speed up to 3.5 Percent This Year: Deputy PM
Bangkok. Thailand's economic growth is expected to accelerate to between 3.2 percent and 3.5 percent this year, largely fueled by increased foreign investment and record-high tourism, a deputy prime minister said on Monday (10/10).
Southeast Asia's second largest economy, which grew 2.8 percent in 2015, has been hit by slowing global growth and weak demand for Thai exports, although tourism has remained a bright spot.
"The economy is now moving forward from increasing foreign direct investment and a record high number of tourists," Deputy Prime Minister Somkid Jatusripitak told reporters.
The military government, which seized power in a May 2014 coup after months of street protests against the elected administration, has said it aims to revive the underperforming economy by spending on big-ticket infrastructure projects.
Thailand expects to invest $4.3 billion on infrastructure over the next five years, Somkid said.
"Our economic fundamentals remain strong, and it (stock market) will be back up shortly," Somkid told reporters.
Thailand's economy has weathered more than a decade of political strife that has seen governments toppled and violent street demonstrations sapping investor confidence.
The nation's main stock index tumbled as much as 3.6 percent on Monday and the baht fell near three-month lows, following news on Sunday that revered King Bhumibol Adulyadej, 88, was in an unstable condition after hemodialysis treatment.
The forecast is in line with that of the Thai central bank, which recently raised its 2016 economic growth projection to 3.2 percent from 3.1 percent.
Thailand expects a record 33 million visitors this year, driven mostly by an increase in Chinese tourists. Tourism accounts for about 10 percent of Thailand's gross domestic product.
Reuters
Tags: Keywords: