Thailand: World Bank raises Thailand 2018 growth forecast

  • Thailand’s economy is expected to grow 4.1% in 2018, up from 3.6% predicted in Aug 17, as the recovery is broadening, the World Bank said on 9 Apr 18.
  • While rapid export growth continues to fuel the economy, an increase in capacity utilisation and acceleration in capital goods imports suggest a nascent domestic demand recovery, the World Bank said in a statement.
  • “With economic growth exceeding 4% in 2018, for the first time since 2012, Thailand has the potential, with intensifying structural reforms, to raise productivity and grow even faster over the medium term,” Ulrich Zachau, World Bank director for Thailand, Malaysia and Regional Partnerships, said in the statement.
  • Thailand’s exports are expected to rise 6% in 2018, but a trade war is a risk, World Bank economist Kiatipong Ariyapruchya told a briefing.
  • But a trade dispute between the United States and China has yet to have a big impact on Thai shipments, which should be underpinned by demand from other markets, while signs of domestic demand recovery will also help, he said.
  • Economic growth in Jan-Mar 18 is expected to have performed better than the previous quarter, he said.
  • In Mar 18, the Bank of Thailand raised its 2018 economic growth forecast to 4.1% from 3.9% and projected a 7% gain in exports, instead of 4%.

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