WB forecasts 4.1% Thai economic growth this year,  with potential for even faster expansion in medi

The country’s economic recovery is broadening in 2018. While rapid export growth continues fuelling the economy, an increase in capacity utilisation and acceleration in capital goods imports suggest a nascent domestic demand recovery as well, the WB report said. Regulatory reforms and overall policy stability are contributing to continuing improvements in business sentiment.
“With economic growth exceeding 4 per cent this year, for the first time since 2012, Thailand has the potential, with intensifying structural reforms, to raise productivity and grow even faster over the medium term,” said Ulrich Zachau, the WB director for Thailand, Malaysia and Regional Partnerships.
“In addition to education and skills reform and strong implementation of quality infrastructure investments, increasing competition, especially in services, will be key for boosting innovation and lifting Thailand on to a new path of higher, long-term growth.
“The new report highlights the importance of innovation for productivity and long-term growth. Thailand, ranked 52 out of 128 [economies] in the ‘Global Innovation Index’ in 2017, has the opportunity, with innovation-friendly policies, to attract and foster high-quality entrepreneurs and innovative investments, both within Thailand and from abroad,” the director added. 
To create an environment promoting innovation, the report highlights priority areas for action for Thailand, including strengthening competition policy, opening and liberalising services, establishing a national data strategy, and improving intellectual property rights – all while continuing to pursue skills reforms. 
As Thailand seeks to attain high-income status as set out in the 20-year “National Strategy”, research and development for both technological catch-up and innovation will play important roles, it added. 
“Thailand cannot attain advanced-country status if it cannot meet the challenges of innovation,” Kobsak Pootrakool, minister attached to the Prime Minister’s Office, said on Monday.
The “Thailand Economic Monitor”, published twice a year, is the World Bank Thailand office’s flagship report, analysing the country’s economic performance and outlook. 
The latest edition is themed “Beyond the Innovation Paradox”.