BANGKOK – The Asian Development Bank (ADB) has released a report forecasting Thailand’s gross domestic product (GDP) will grow 4.2 percent per year in the next five years due to improving economic indicators across the board and the country’s mobilization of infrastructure projects.
The ADB released its report on infrastructural needs of 45 Asian countries. The report indicated that between 2016-20, the region plans on investing a total of 881 billion US dollars in energy, transportation, telecommunications, plumbing, and public sanitation.
Thailand is expected to require an average of 14 billion dollars per year to fund its infrastructure projects, but expects it to receive six billion. To bridge the gap, the ADB advised the Thai government to reform its tax structure to encourage private investment and borrow money from abroad, a feasible option as Thailand’s public debt ratio remains stable.
Should the Thai government mobilize investment according to plan, the ADB expects the country’s GDP to grow at a rate of 4.2 percent per year in the next five years. Meanwhile, growth this year is expected at 3.5 percent and next year at 3.6 percent.