Thailand Quarterly Economic Report
Q4 | 2017
Q4 | 2017
- After the long period of struggle to escape from a slow-growth path, the Global economy is now getting back on track. While high-income economies appear to be gathering momentum owing to the prolonged accommodative monetary policies and the improvement of economic fundamentals, other emerging markets and developing economies continue with their recovery. This is aided by an increase in trade volume and commodity prices. It is forecasted that the global GDP growth will grow 3.6% in 2017 and 3.7% in 2018, compared to 3.2% in 2016.
- Overall, the European economy has performed significantly better than expected this year. The GDP growth is estimated to expand by 2.2% in 2017 and 2.1% in 2018, which was mainly contributed by healthier fiscal condition, improvement of domestic consumption, a rise in trade among member countries, and decreasing rate of unemployment.
- The monetary stance will remain across much of the region. Meanwhile, the economic reform has continued to progress in many countries, though some challenges such as a political fragmentation still lie ahead.
- Investment is also resilient amid favorable financing conditions and considerably brightened economic sentiment.
- Asia’s economic growth is forecasted to expand by 5.5% this year due to an economic rebound in advanced and some developing economies. A large number of public infrastructure investments in many countries will help in sustaining a robust growth momentum in the region. Private consumption and spending remain a core contribution to the Japanese economic growth. Meanwhile, the improvement of the manufacturing industry in India has positively influenced their economy.
- GDP growth is predicted at 3.6% in 2017 compared with 2.7% on average in the last five years owing to external demand and public investments. However, the high level of household debt still remains a limitation which prevents rapid expansion of the economy. Public infrastructure investments by the government will continue to attract both private domestic and foreign investments.