The Return Of Private Investment To Deliver Stronger GDP Growth

Economic Research	19 September 2016
Thailand
Economic Outlook
The Return Of Private Investment To Deliver Stronger GDP Growth Thailand Transport Infrastructure Plan (TTIP), in our view, is set to ramp up meaningfully in 2017 with the commencement of construction for the pink, yellow and orange MRT lines, the crown jewels in terms of earnings visibility, Suvarnabhumi Airport expansion and marine port facility upgrade. The latest set of projects will open up opportunities for property development and services providers in the medium term, and coupled with enduring accommodative monetary policy, is likely to unleash a wave of private investments in its slipstream. Meanwhile, with private consumption momentum on a sustainable path amid an election year, government spending will now turn to longer-term objectives aimed at addressing the competitiveness of its industries. However, in the immediate term, external demand will continue to face challenges in the year ahead, which will afflict the manufacturing sector. In aggregate, we envision for Thailand’s GDP to grow 3.8% in 2017, picking up from an estimated 3.3% gain this year. Economist:  Ng Kee Chou | +603 9280 2179
To access our recent reports please click on the links below: 29 June 2016: Resurgent Private Consumption To Help Thailand Weather External Storm 29 March 2016: Challenges Remain But Government Has Ample Room For Manoeuvre 08 December 2015: Intensified Fiscal Spending To Help Head Off Another Year Of Anaemic External Demand 30 September 2015: Experienced Hand To Steer Thai Infrastructure Drive 01 July 2015: Consumer Demand Hobbles As Government Braces Balance Sheet For Massive Infrastructure Spending In FY2016