BANGKOK: Thailand’s 2016 GDP growth is expected to be 3.2 percent, Deputy Prime Minister Somkid Jatusripitak said yesterday, adding that Asean’s second-biggest economy was still on shaky ground but should see an improvement this year. “There are no investors, investors do not dare invest, exports are not good. Autos are the only good thing. For the whole year 2016 growth should be around 3.2 percent,” Mr. Somkid said at a seminar in Bangkok. Thailand’s export-reliant economy has struggled since a May 2014 coup by the army and exports and domestic demand remain subdued. Last year, the military government introduced various measures to boost both private and public spending. The Finance Ministry has forecast economic growth of 3.4 percent this year. Mr. Somkid said yesterday that Thailand’s GDP should grow between three and four percent in 2017 as exports, commodity prices and tourism improve.
Thailand received a record 32.6 million foreign visitors in 2016, according to the tourism ministry. Deputy Prime Minister Thanasak Patimaprakorn told reporters Monday that Thailand expects revenue from foreign tourists to rise 8.5 percent to 1.78 trillion baht ($49.8 billion) this year. The expected rise results from an improved outlook for global tourism as well as Thailand’s investment in infrastructure, Mr. Thanasak Patimaprakorn said. “This is another year that we will need to focus on quality tourism more than tourist numbers,” he said. The World Bank on Tuesday said global growth would accelerate slightly as recovering oil and commodity prices ease pressures on emerging-market commodity exporters. It said that China’s growth would continue to slow but growth would edge higher in some Southeast Asian economies, including Thailand and Indonesia.
Thailand’s King Bhumibol Adulyadej, who reigned for seven decades and was seen as a stabilizing figure in the country, died on October 13. King Maha Vajiralongkorn, his only son and heir, ascended the throne on December 1, putting to rest concerns from some quarters that the royal succession would not go smoothly. The junta has overseen a period of relative political stability in Thailand following more than a decade of unrest including on-off street protests and two coups, partly by muzzling dissent including its political opponents. “I believe in 2017 there should be confidence in Thailand’s economy, the political situation is better, the royal transition was smooth. [Also] exports to the United States should be better,” Mr. Somkid said. “We don’t think Europe will be good but it should have a minimal impact on us,” he added, without giving further details. The junta has promised to hold a general election later this year as part of its roadmap to return Thailand to democratic rule.
