Illustrative image (Source: thailand-business-news.com) (Photo: VNA)
The Siam Commercial Bank’s (SCB) latest review of the Thai economy reveals a healthy expansion rate despite a decrease in growth due to the global economy, trade war between the United States and China, and uncertainty among private companies on the formation of new government.
The SCB’s Economic Intelligence Centre (EIC) first executive vice-president Yunyong Thaicharoen has revealed the centre has reduced its growth projection for the Thai economy this year to 3.6 percent from a previous expectation of 3.8 percent, due to the decreasing trends of the export sector affected by global economic conditions, a trade dispute between the United States and China, and the International Monetary Fund’s (IMF) latest global economic growth projection reduced to 3.3 percent.
Investments by the private sector show signs of recession as companies wait for clarity on the formation of a new government, which should benefit the Q3-4 economy as soon as the new administration can take office, by raising confidence among private firms and international investors.
According to the EIC, current Thai economic growth remains good because of the strong economic foundation, complimented by government investment in infrastructure projects, and the expectation of an additional 760 billion baht in investments this year. The tourism sector has shown signs of recovery with a further increase in the number of Chinese tourists. It is expected Thailand will welcome 40.7 million international visitors this year. General income in other sectors except farming has also shown growth, which helps with consumer confidence.
It is expected the Monetary Policy Committee will continue to keep the policy rate at 1.75 percent throughout 2019 due to increased risk factors from uncertainties both inside and outside the country, and the current steady low inflation rate./.