Bank revises up its forecast for GDP growth
Siam Commercial Bank Economic Intelligence Centre (SCB-EIC) has revised up its forecast for Thailand’s GDP growth to 3.4 per cent in 2017 from 3.3 per cent, thanks to a boost from exports.
The economies of trading partners such as the US, Europe, China, and the CLMV (Cambodia, Laos, Myanmar, Vietnam) nations are expected to continue to expand. Thai exports that will benefit from expanding markets include electronic parts and food and beverages, which account for 30 per cent of Thailand’s total exports.
EIC raised its forecast for Thai exports to 3.5 per cent from 1.5 per cent in its previous projection.
However, it said domestic consumption is slowing down due to a stagnant labour market and expected decline in farm income in the second half of the year. EIC expects the economy will receive a boost in the second half from the government’s infrastructure investment and stimulus measures, which are designed to encourage spending, particularly in the provinces.
