Bangkok – Krungthai Bank has projected the Thai economy will grow at a rate of 4.1% this year, expressing confidence that the kingdom will see an influx of foreign capital once there is more clarification on the election date.
Phatcharapoj Nantramas, a senior economist at Krungthai Bank, said the bank has revised its 2019 economic growth projection down from 4.3% to 4.1%. However, he expects that government and private spending will be bustling in the second half of 2019 and the country will be able to regain investor confidence once the electoral authority announces the election date.
The economist added that if the next government chooses to continue the existing economic policies, the Thai economy will be less vulnerable to global economic fluctuations and uncertainties.
He also warned of the impact of the prolonged trade war between the United States and China, but was sanguine about China’s production slump in the first quarter of 2019, a situation Phatcharapoj thinks could benefit the kingdom in the short run. Thai products and services sold to China account for 12% of the country’s exports.
With that said, Phatcharapoj noted that 2019 will be a year full of challenges for Thai entrepreneurs who will encounter liquidity risks and emerging technologies that could potentially transform the business sector for good.