BANGKOK, Jan 29 — Thailand’s finance ministry today raised its economic growth forecast for this year to 4.2 per cent from 3.8 per cent, and also raised its estimate for exports, an official said.
Exports, a key driver of Thai growth, should increase 6.6 per cent this year, compared with the 5.7 per cent predicted in October, ministry spokeswoman Kulaya Tantitemit told a news conference.
South-east Asia’s second-largest economy will mainly be driven by government spending and large public infrastructure projects this year, she said.
Economic growth in 2017 is now estimated at 4.0 per cent — which would be the fastest pace since 2012 — and compared with the 3.8 per cent the ministry projected three months ago, due mainly to stronger exports and tourism, Kulaya said.
Official 2017 gross domestic product (GDP) data is due on Feb. 19. The economy expanded 3.2 per cent in 2016, still lagging regional peers.
In December, the Bank of Thailand raised its economic growth forecasts for both 2017 and 2018 to 3.9 per cent from 3.8 per cent.
Kulaya said the strong baht, which is hovering at its highest level in more than 4 years against the dollar, should have only a little impact on exports because the economies of its trading partners are still showing solid expansion.
The baht has appreciated by 4 per cent so far this year, the second-most among Asian currencies.
The finance ministry also forecast the central bank will keep its policy interest rate at 1.50 per cent throughout 2018. The rate has been unchanged since April 2015.
The central bank next reviews monetary policy on Feb. 14, and most economists predict no policy change. — Reuters
