World Bank Forecasts Thai GDP to Grow 2.7% from Export and Government Investment

Following the World Bank report, Follow the Thai Economy: Productivity for Thai Wealth, which has revealed today, Thailand economic growth is expected to rise by 2.7% this year. 

World Bank stated that Thailand growth decelerated to 2.5% in 2019 from 4.1% in 2018 with 2 principal factors; the slowdown on export and the slowdown on domestic consumption demand. Moreover, Thai baht appreciation has affected tourism sector and commodity exports.

In the future, the economy is likely to face risks from both internal and external factors. The external factors came from trade tensions between the United States and China. Meanwhile the internal factor is the unstable of coalition government that affects investors’ confidence.

The expert advised that the economy of countries with large economies scale, such as China, Europe and the United States is slowing down continuously and as the global cycling, the demand will weaken and affect other export countries.

However the export is hoped to recover but still need to strengthen the economy. With the driven by the demand for exports, this sector will benefit from the alleviation of trade tensions. 

The expert added, the Thai government should boost on investment to stimulate the economy and promote investment of the private sector.