BANGKOK, December 19, 2016 – Thailand’s economy is expected to grow at 3.1 percent in 2016 and 3.2 percent in 2017, up from 2.8 percent last year, according to the 2016 Thailand Economic Monitor released today by the World Bank.
The key drivers of growth remain private consumption and public investments, such as the dual rail track and rail upgrading projects, the report says. Tourism growth has been strong in 2016, with the number of tourist arrivals, mostly from China, increasing by 13.1 percent in the third quarter.
In the fourth quarter, a temporary slowdown and the postponement of economic activities during the period of mourning after the passing of His Majesty King Bhumibol Adulyadej in October are expected to be offset in part by holiday tax breaks on shopping and domestic tourism at the end of the year.
The economy
The new President will inherit an economy that has spent the last eight years battling back from the brink of an averted second Great Depression. Unemployment is at 4.6 %, GDP growth was 3.5% in the third quarter. So the new president inherits a strong platform. His prescription for tax cuts that are likely to favor the rich and a purge against regulations have Republicans predicting a huge economic expansion. Yet Trump's warnings of punitive trade sanctions against China and vow to renegotiate deals like NAFTA could mean an unpredictable year ahead for the global economy. Trump must also find a way to live up to his promises of lifting blue collar voters who have lost jobs to the technological revolution and low wage economies abroad and who helped put him in the White House.