Krungsri Research predicts that the Thai economy will continue to grow by 4.1 per cent in 2019, close to the 4.3 per cent growth of 2018 and exceeding the post-crisis average of 3.8 per cent.
Private consumption and private investment will be the major catalyst for growth, helping to offset the slowdown in external demand, they say. The expectation of clearer economic policies after Thailand’s general election should help build confidence among domestic and foreign investors, the report predicts.Somprawin Manprasert, the Krungsri head of research and chief economist, said, “Domestic spending will play a more important role in driving the economy next year. Private consumption is likely to enter the upcycle after the capacity utilisation rate of several industries hit multi-year highs. Driven by the acceleration of public-private partnerships (PPP fast track), the investment in infrastructure mega projects is expected to reach Bt281 billion in 2019 from Bt98 billion in 2018.“In addition, Thailand will benefit from an increase in foreign direct investments, partly due to the relocation to avoid negative impact from the US-China trade war,” Somprawin said.