Kasikornbank says Thai economy to grow 3% this year


BANGKOK – Kasikornbank (KBank) has forecast that continuous government spending this year could lead to a maximum of 3% economic growth.

KBank Executive Vice President Kattiya Indaravijaya said the Thai economy is likely to expand within the range of 2.8 – 3% by the end of 2016. Growth will become apparent in the second half of this year, when more public funding is injected into the economy.

However, the export sector remains susceptible to the Chinese economic slowdown. Export figures recorded during the first few months have contracted further than previously expected.

The KBank VP also said that politics can influence the economy. Thais are waiting to hear whether a public referendum will be organized to vote on the final draft of the constitution.

Meanwhile, the Thai stock market will continue to fluctuate according to the performance of emerging markets and the various fiscal policies of major economies. Investors are advised to spread the risk by diversifying their portfolios.