Government investment to be key factor to boost Thai economy

BANGKOK, July 9 (TNA) - Public mega-investment projects of the Thai government should become a key factor to boost the country's economic growth this year. Yunyong Thaicharoen, First Executive Vice President of Siam Commercial Bank (SCB), voiced the assessment on Tuesday, acknowledging that the Thai government's investment on new mega-infrastructure development projects has expanded by about 7 per cent so far. Yunyong, who also heads the SCB's Economic Intelligence Center (EIC), conceded that private investment projects have slowed down, especially those run by construction firms and small and medium-sized enterprises (SMEs). Besides, Thai exports have dropped since early this year, caused by negative impacts from the persistent trade war between the United States and China and are likely to contract by about 1.6 per cent year-on-year on average in 2019, while the number of foreign tourist arrivals in the Thai Kingdom should total at about 40.1 million this year, from the earlier target of 40.7 million, or only a 4.8 per cent year-on-year expansion. According to the SCB's chief economist, Thailand's surplus in the current account over the past years at 7 per cent of the country's gross domestic product (GDP) on average, which is a high level and has led to the appreciation of the Thai baht by about 13 per cent over the past five years and by about 5 per cent since early this year, has also affected the Kingdom's export growth. The SCB's chief economist told journalists that his center has, thus, adjusted downward its projection of Thailand's GDP growth in 2019 to about 3.1 per cent year-on-year on average, from its earlier forecast of about 3.3 per cent year-on-year. The SCB's chief economist said he believed that the new Thai government should be formed within this week and new economic stimulus measures, expected to be soon implemented by the new administration, should, however, help boost the national economy in the last quarter of this year. (TNA)