Thailand’s economy expected to grow 2.5% in 2016
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World Bank has raised the economic growth forecast for Thailand in 2016 from 2.2 per cent to 2.5 per cent, believing Thailand's strong fundamentals and ample fiscal and monetary buffers will help Thailand weather shocks.
Last year, Thailand's economy expanded by 2.8 per cent.
In the 2016 Thailand Economic Monitor released today by the World Bank, fiscal stimulus and tourism are highlighted as the key drivers of economic growth in Thailand, but the economy still faces headwinds on the path to a broad-based and sustained recovery. The slowdown has exposed structural challenges in implementing public investment, maintaining or raising export competitiveness, and addressing skills mismatches, the report said. The aging of the working-age population will begin to affect the Thai economy within the next five years.
Kiatipong Ariyapruchya, senior country economist, noted that due to the issue of ageing, Thailand's working population would shrink by 11 per cent from now until 2040, from 49 million to 40 million.
He noted that major headwinds to the Thai economy would also involve a possible delay in mega projects as well as low export competitiveness. In the first quarter, public spending and tourism were major contributors of Thailand's ecomic growth.
