Whipping all economists’ estimates as rebounding farm output added to gains from exports and private consumption, Thailand’s economic growth heaved to a five-year high last quarter.
Department of statistics has also raised its growth forecast for this year to 4.2 percent to 4.7 percent, from 3.6 percent to 4.6 percent.
Thailand’s foreign-reserve buffers and a current-account surplus are helping to armor the nation from volatility as U.S. rates rise. The baht gained 0.1 percent to 32.163 per dollar as latest. It is among the few emerging-market currencies that has gained against the dollar this year.
Four years after the military seized power, Thailand’s economy is rebounding with growth sustained by a pick-up in exports and tourism. The central bank last week held its benchmark rate near a record low to help support the economic recovery as businesses are still reluctant to invest. The military government has cut red tape, stepped up efforts to woo foreign-direct investment for industrial modernization and is boosting infrastructure. But big projects have faced some delays and elections expected next year inject uncertainty into the outlook.
The World Bank is still vacillating to raising Thailand’s potential growth to a range of above 4 percent to 5 percent as it remains a challenge. Because Boosting education and services are critical to raising productivity as the population rapidly ages.
Credit : Suttinee Yuvejwattana