It will be boosted by the rising external demand in the global tech cycle.
VP Bank reported an estimated increase in Thailand’s GDP, growing from 3.2% in 2017 to 3.9% in 2018.
The forecast is backed by the growing external demand in the global tech cycle that started at the end of 2017, as well as the increasing tourist arrivals, and higher prices of exports, VP Bank said.
Investments are also expected to rise from 2.1% in 2017 to 6.2% in 2018. Inflation rate is also forecasted to increase to 0.7%, whilst private consumption will inch up to 3.4%.
Further, the implementation of Thailand’s planned reforms may boost productivity and business sector’s confidence this year, helping the recovery of private investments.
“On the domestic front, the next general election is set to be held in November 2018. Political uncertainty will likely continue to dampen investment sentiment in the near future, but an orderly transition to a civilian government might improve Thailand’s growth outlook beyond 2018,” VP Bank said.
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