Thailand Quarterly Economic Report
Q4 | 2016
Q4 | 2016
- An economic growth projection for the world economy is revised down to 3.0% in 2016 lower than 3.2% in previous year as a result of a slower-than-expect recovery in developed economies and slowing growth in developing economies.
- China’s economic slowdown remains the biggest risk to the prosperity of Asian region, particularly in export-oriented economies. The fastest-growing subregion is still South Asia. Meanwhile, Japanese economy will continue to grow at the tepid pace as the effect of ultra-loose policy to boost demand for domestic credit is unlikely to be significant.
- Some high-income economies have started to gain momentum. Low inflation, high consumer spending, rising wage rates, and healthy labour market will help accelerate the US’s economic growth. Meanwhile, the EU economy is expected to grow steadily with the concern over more countries leaving the EU.
- Overall, ASEAN economy remain relatively resilient amid weakness in the world economy. An expected recovery of energy prices and global demand, along with a gradual increase in trade and investment activities among the ASEAN member states will drive the region’s economic growth rate from 2017 onwards.
- Thailand’s real GDP in 2016 is projected to reach 3.2%, improving from 2.8 in previous year. Both private consumption and investment will grow robustly and help promote the overall economy. A negative effect on growth in outbound shipments owing to weak global demand will remain; however, the impact will be dampened down by the rising merchandise demand from ASEAN countries and significant expansion in tourism sector.