KRC:Thai economy should grow by 3.9% in 2017, 4% in 2018

BANGKOK, December 20 (TNA) - The Kasikorn Research Center (KRC) has upward adjusted its projection of Thailand's gross domestic product (GDP) growth in 2017 to 3.9 per cent year-on-year on average, from its earlier forecast of 3.7 per cent year-on-year, while assessing that the country's GDP should further grow by about 4.0 per cent year-on-year in 2018. KRC Managing Director Chao Kengchon told journalists of the updated prospect on December 19, attributing it to the country's high export growth of about 9 per cent year-on-year on average in 2017. For Thailand's GDP growth in 2018, Chao said it should grow by 4 per cent year-on-year on average, cushioned by expanding public and private investment projects, domestic tourism and exports, particularly in the first half of next year. The KRC executive viewed that a clear direction of the Thai government's policy on the development of the Eastern Economic Corridor (EEC) should further stimulate private investment projects in the second half of 2018, along with the new general election, if taken place by the end of next year as stated in the roadmap of the present military administration, as it would enhance international investors' confidence in the Thai economy, where the inflation should then stand at 1.1 per cent. According to the KRC executive, there will be remaining risk factors for Thailand's economic growth in 2018, including an uncertain direction of the world economy and the country's new general election, nuclear tensions in the Korean peninsula, a possible decline in the purchasing power of local grassroots due to an anticipated drop in farm produce prices and high household debts. The executive of the Thai private think tank foresaw, on the other hand, a steady growth of the online retail business on the domestic market next year with its changing styles and greater competition, along with a new trend of the domestic auto and electronic industries and an increase in quality international tourist arrivals in the Thai Kingdom. (TNA)