The finance ministry of Thailand has recently reported on Monday that it raised its economic growth forecast from 3.8 percent to 4.2 percent this year. Additionally, the ministry also announced new estimates for exports data of the country.
From the estimated data of 5.7 percent back in October, the finance ministry revised the data for exports to 6.6 percent this year, Ministry Spokeswoman Kulaya Tantitemit told reports. Exports play a crucial role in the economic growth of Thailand.
Kulaya also added that Thailand as the second-largest economy in the Southeast Asian region will be predominantly driven by government spending and large public infrastructure projects in 2018.
Bangkok skyline as viewed from Benjakiti Park, Bangkok, Thailand.
Now at around 4.0%, the economic growth forecast for 2018 is now believed to be in its fastest pace since 2012. This has heavily rooted from the growing number of exports and tourism, Kulaya added.
The release of the official gross domestic product (GDP) for 2017 is estimated to be released on February 19 this year. The Thai economy reported an expansion of 3.2 percent in 2016 and if the official data comes in the exact estimation or beyond, the economy have indeed expanded further.
Back in December, the Bank of Thailand has also raised the forecast of the economic growth of Thailand for both 2017-2018. The institution revised the data from 3.8 percent to 3.9 for the said periods.
The strong bullish performance of Baht which is at the time being has hit its 4-Year High versus the US Dollar, is not expected to heavily impact the export data. The reason why is because the economies of its trade connections are all displaying impressive growth data presently.
Most recently, the Baht had a 4% rise in 2018 which is actually the second-most out of all Asian exchanges.
Furthermore, the finance ministry also announced its forecast for the Central Bank of Thailand. It is currently estimated that the bank will keep its policy rates at around 1.50 percent throughout 2018 and will remain unchanged.
Since the last policy change was dated at around 2015, most economists envisage that the bank will keep it unchanged. The central bank is set to review the monetary policy on Feb. 14 of this year.
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