BANGKOK: Thailand’s economy is expected to grow 3.5% this year, up from 3.2% initially predicted in April, and rising to 3.6% next year, the World Bank said on Thursday.
South-East Asia’s second-largest economy is gaining momentum as farm incomes recover from drought, merchandise and tourism exports rise and fiscal stimulus continues, the World Bank said in a statement.
In April, it predicted 2018 GDP growth of 3.3% for Thailand.
“Thailand has the potential to raise growth to above 4% by addressing structural bottlenecks - education equality, services liberalisation and public infrastructure management,” it said.
However, risks to the economic recovery include political uncertainty, if reforms and elections become postponed, while a deterioration in the global environment, including increased trade protectionism and a slowdown in the Chinese economy may impede Thailand’s export momentum and private investment recovery, the international lender said.
Thailand’s economy expanded a better-than-expected 3.7% in the second quarter from a year earlier, prompting the state planning agency to raise its 2017 growth projection to 3.5%-4.0% from a range of 3.3%-3.8%. - Reuters
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