Thai economy likely to grow over 4% in 2018

BANGKOK, January 30 (TNA) - The Thai economy is expected to further grow by 4.2 per cent year-on-year in 2018, from about 4 per cent in 2017, driven mainly by the government's public spending projects. Thai Finance Ministry Spokeswoman Kulaya Tantitemit, who is also the ministry's Inspector-General, told journalists of the projection on January 29, pointing out that the government's spending on new mega-investment projects are anticipated to expand by up to 11.8 per cent this year, from a shrink by 1.1 per cent year-on-year last year. The spokeswoman acknowledged that the Thai government has also set a total state budget of about 150 billion baht in the 2018 fiscal year, covering its spending on official welfare programs to take care of low-income earners and on agricultural reform programs. Besides, the spokeswoman said, investment projects of state enterprises, totally worth about 390 billion baht, and private investment plans, expected to expand by 3.8 per cent year-on-year, from 2.1 per cent year-on-year in 2017, boosted by more confidence in the Thai economy by business operators, should drive the national economic growth forward although it is now likely that the country's new general election would be postponed for a few months to early next year, from late this year as earlier set. The spokeswoman stated that Thailand is also expected to earn up to about 2.05 trillion baht in tourism-related revenues in 2018, when the number of international tourist arrivals in the country should reach 38.2 million, from about 35.4 million in 2017 or a 8 per cent year-on-year growth. According to the spokeswoman, the value of Thai exports should also further expand by about 6.6 per cent year-on-year this year despite the appreciation of the Thai baht, from about 9.7 per cent year-on-year last year, thanks to the growing economies of the country's trading partners, and the domestic consumption is expected to gradually expand further by 3.5 per cent year-on-year, from 3.2 per cent year-on-year in 2017. The spokeswoman noted that Thailand should also gain a surplus of about 45.5 billion US dollars in the current account, or about 9.1 per cent of the country's gross domestic product (GDP), while the general inflation in 2018, expected at a low rate of 1.2 per cent based on the anticipated Dubai crude oil price of 61.5 US dollars a barrel on average, should not affect the recovering Thai economy this year. (TNA)