InfoQuest, (July 11, 2019) -- World Bank released the latest economic report of Thailand, saying that in the first half of 2019, Thai economy lost steam amid the global economic slowdown. World Bank predicted that Thai economy will grow 3.5 percent this year, lower than the 4.1 percent in the previous year.
In the first half of 2019, Thai export shrank 4 percent, the first shrink of quarterly export over the past three years. Yet private investment and family consumption maintained continuous growth, almost the best performance in the three years, with favorable factors including low inflation, employment increase, and more government expenditures.
Government investment decreased, mainly caused by the delay of large investment projects because of election postponing. In the first quarter of 2019, Thai economy increased 2.8 percent, the first time that it had been lower than 3 percent since the beginning of 2015.
Meanwhile, World Bank forecast that Thai economy in 2020 will grow at a rate slightly lower than the previously predicted 3.9 percent, standing at 3.6 percent. The growth rate in 2021 is predicted at 3.7 percent.
Longstanding political uncertainty is the major factor affecting Thailand's economic prospect. The new government formed by 19 parties has exerted negative influence over the confidence of investors and consumers. What's more, it is probable that the government will postpone the implementation of large infrastructure projects.
There are also external factors. The sustained tension between China and US may lead to lower demand for Thai exports, and affect private sector in investing export-oriented industries.
Source: InfoQuest, by Kasamarporn Kittisamphan/ Rachada, translated by Xinhua Silk Road
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