GDP growth forecast this year at 3-3.5%

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Increased government spending from mega projects, and economic stimulus packages are expected to drive the country's growth to 3-3.5 percent this year, the private sector says.

The figures were assessed and disclosed at the joint press conference held by the Joint Standing Committee on Commerce, Industry and Banking (JSCCIB) yesterday.

Comprising of the Thai Chamber of Commerce, the Thai Bankers Association, and the Federation of Thai Industries,  they believed the economic outlook for the country in 2016 will be between 3-3.5 %.

Main driving force behind the projected growth are expected increased in government spendings  on major mega  projects and the continued growth in the country’s tourism sector.

JSCCIB said tourism will continue to enjoy continued growth from 2015 which saw almost 30 million foreign tourists.

This was despite the dramatic downturn in the Chinese economy which inadvertently contributes to Thailand’s tourism growth as Chinese tourists now prefer to travel to closer destinations.

This is also helped in no small measure by the fact that Thailand still remains the destination of choice for Chinese tourists.

For export outlook, they estimated no less than 2% growth primarily from exports to Asian neighbors such as Cambodia, Laos Myanmar and Vietnam.

But they cautioned that the global economic outlook, China’s GDP, the country’s drought situation as well the increase in terrorism and currency exchange volatility remains a major concern as any of these will directly impact exports.