The Thai economy shows signs of anascent recovery but faces challenges on the path toward abroad-based and sustained recovery. The Thai economyaccelerated to 2.8 percent in 2015, compared to 0.9 percentin 2014, partly on the basis of government consumption andinvestment, and partly on declining imports. Tourism andprivate consumption have mildly recovered, whereasmerchandise exports dropped in the last quarter of 2015.Economic growth is expected to moderate to 2.5 percent in2016 primarily due to sluggish exports of goods and privateinvestment amid a slowing and difficult global environment.Fiscal stimulus and tourism receipts will remain key driversof growth in 2016. Poverty rates are expected to fall at aslower rate, with poor households concentrated in ruralareas affected by falling agricultural prices. Downsiderisks to economic growth include a hard landing in Chinaaccompanied by global financial turmoil as well asheightened domestic political uncertainty. Nevertheless,ample fiscal and monetary buffers, a sound financial sectorand strong fundamentals will help Thailand weather shocks.
PDF
download
878987797
028-85220240
