BANGKOK, April 24 (TNA) — The World Bank expects the Thai economic growth at 3.8% this year due to international trade war and slowdowns in tourism and exports.
Kiatipong Ariyapratya, Thailand-based senior economist of the World Bank, said the prediction was in the World Bank’s East Asia and Pacific Update report released this month. The World Bank revised the estimated growth downward from 3.9% to 3.8%. The rate stood at 4.1% last year.
The World Bank also predicted the rate for next year at 3.8%.
The bank based its projection on weaker export growth rate, expected at 5.7% this year compared with 5.9% last year. For next year the bank foresaw the rate of 5.5%. The bank also saw the slower growth of tourist arrivals in Thailand.
Mr Kiatipong said government expenditure would rise 4.6% and private expenditure would go up 4.3% and both would be main factors driving the economy this year.
Delay in the formation of the next government might affect the government’s investment and procurement and private investment in 2021. There would not be any impact this year and next year because they already underwent bidding and procurement procedures, he said.
Thailand’s limited level of public debts and its suitable policy rate at 1.75% still gave room for the government to implement more economic stimulation measures pending the formation of the next government, Mr Kiatipong said. (TNA)
