Thailand Quarterly Economic Report
Q2 | 2017
Q2 | 2017
- The global economy has gradually gathered growth momentum even as growth in some advanced economies remains tepid and downside risks such as the US protectionist policies, the impact of Brexit, turbulence in financial markets from China to the world, and geopolitical turmoil continue to pose a challenge on the medium-term outlook. The projected growth in 2017 is set to grow 3.5%, improved from 3.1 previously.
- An upward rebound in advanced economies and stronger-than-expected activities in some emerging market and developing economies will support a modest economic recovery in 2017. Growth in the US will pickup and likely to maintain the momentum until 2018 before encountering the mind recession in 2019. Meanwhile, a positive growth expansion in Euro Area is anticipated due to a cyclical recovery in manufacturing and trade; however the long-term outlook remains challenging owing to external uncertainty.
- Asia’s economic growth is forecasted to expand by 5.4% this year due to stronger-than-expected growth in China and healthy pickup in many developing economies in the region. The Japanese economy in 2017 will slightly expand but shrinking labour force will limit growth in the future. Meanwhile, India’s economic outlook remains strongly positive, driven predominantly by service sectors and manufacturing sector as business environment improves.
- ASEAN economic growth in 2017 will be driven by growing private and public consumption, robust infrastructure investment and accommodative monetary policies. With policy initiatives to reduce barriers to trade, services, investment, and skilled labours, the region will be more competitive compared with other economic blocs.
- Thailand’s headline growth is 3.5%, compared with 3.2% in 2016. A pick-up in growth stems from stronger external demand and the expansion of public consumption. The government’s stimulatory efforts and large inflows of tourists will help encourage private consumption. Meanwhile, a progress in government infrastructure projects, particularly in transportation infrastructure will continue to aid the economic rebound in 2017.