Economy Outlook by NESDB
The latest report from the National Economic and Social Development Board (NESDB) revealed a projection of the domestic economy growth of 2.9% in 2015, and 3-4 % in 2016. In the report, this year’s private investments are expected to grow by 4.7%, with an increase of private consumption by 2.6% which should lift the growth of domestic consumption.
The growth of economy next year will be helped by an acceleration of the government’s spending which saw an increase in the funding allocation on top of the government investment on infrastructure.
The projection figure by NESDB is also agreed by the Bank of Thailand (BoT) which expects the expansion of 2.9% this year and 3.2% for the following. The BoT also noted that the public spending should remain the main driver of economic growth while the high household debt, low agricultural prices and the drought still decelerates the growth rate in private consumption.
In the third quarter the Chinese and Japanese economic slowdown still affected the export sector to contract, by 4.7%. However, the stability of the Thai Baht will help he export to gradually rover.
Source The Nation 17th November 2015
