Investment to mainly drive ahead Thai economy in 2019

BANGKOK, January 16 (TNA) - State-run Krungthai Bank (KTB) has projected that the Thai economy should grow by 4.1 per cent year-on-year in 2019, driven mainly by new investment projects in both the public and the private sectors. According to the Krungthai Macro Research unit, there should be expanding new public and private investment projects in the second half of this year, including those of the Thai government-supported mega-infrastructure development plans and those in the Eastern Economic Corridor (EEC). Besides, Thailand's new general election, scheduled within the first half of this year, and the government's welfare programs to raise purchasing power of low-income earners should help boost the national economic expansion in 2019. However, the Krungthai Macro Research unit cautioned that such external risk factors as the ongoing trade war between the United States and China, which may be escalating, and an anticipated slowdown of the immense Chinese economy until the first quarter of this year could affect Thailand's export and tourism sectors to a certain extent and the domestic economy should be, thus, mainly driven by the new domestic investment projects this year, instead. The Krungthai Macro Research unit also pointed out that the external risk factors would also result in a slower growth pace of the Thai economy to its projected figure of 4.1 per cent year-on-year in 2019, from about 4.3 per cent year-on-year in 2018. The Krungthai Macro Research unit suggested, meanwhile, that the Thai business sector conduct a well-planned financial risk management amid an expected new key interest rate increase later this year and an uncertain direction of people's purchasing power, as well as a probably change in consumers' behaviors due to the so-called technological disruption presently. (TNA)