World Bank: Thai GDP to expand by 3.2 per cent in 2017

BANGKOK, Dec 19 (TNA) -- The World Bank has forecast that the Thai GDP will expand slightly by 3.2 per cent in 2017, while advising that the government should reform the country's service sector in order to drive the national economy forward to reach the expansion of 4-5 per cent. Senior Country Economist for Thailand Kiatipong Ariyapruchya said of the report by the World Bank on the Thai economy that the Thai economy is projected to grow by 3.1 per cent this year and expand slightly in 2017 to 3.2 per cent. The economist noted that the expansion could be attributed to the consumption increase from the private sector and the higher state spending, particularly on large infrastructure investments, which would help attract more investments from the private sector and help improve the country's economic image. The strong growth from the tourism sector in 2016, as the number of tourists hike by another 13.1 per cent, would continued as one of the main drives for the economy expansion in 2017, while the revival of the agricultural sector after the tough drought season and the personal income tax scheme implemented by the government at year's end would also help to push the economy to grow next year. Nonetheless, Mr Kiatipong said, the Thai economy could still face risk, as the world economy continues to be unstable, especially from Brexit, along with the upcoming trade policy by the US president-elect Donald Trump, and the tendency to increase the interest rates by US' Federal Reserve System (FED), which could put pressures on Thai exports. He further mentioned that the GDP expansion of around 3 per cent annually is lower than the country's potential of 4 per cent GDP growth, in which he suggested the government should increase the ratio of the service sector in the economy, as well as to improve laws and regulations to provide more support and opportunities for competitiveness and investments from international investors in Thailand. (END)