NESDB eyes 3.3% growth rate
Thailand's economy is expected to expand in the range of 2.8-3.8 per cent in 2016, according to the Office of National Economic and Social Development Board (NESDB).
The growth rate would be lower than the previous projection of 3-4 per cent, given sluggish export outlook. After three years of negative growth, exports should show 1.2 per cent expansion this year.
The think tank announced that growth rate in 2015 was 2.8 per cent.
"Public spending and investment will remain the key growth factor. We expect budget disbursement this year to hit Bt2.54 trillion or 93.4 per cent of total," said Poramatee Vimolsiri, secretary general of the think tank.
He added that state enterprises' investment disbursement should amount to Bt444 billion or 75 per cent of total. Meanwhile, infrastructure investment, based on the number of 20 projects ready for implementation this year, should also reach Bt66.83 billion.
He asserted that the Thai economy would also benefit from low oil prices, which should fall to US$32-$37 per barrel, the lowest in 13 years. The dollar/baht exchange rate should also weaken to Bt35.5-Bt3.5 per dollar, from Bt34.29 in 2015, on anticipation that the US rate should hike this year.
