MIL-OSI Asia Pacific: Thai Economy Proved to Be Resilient in the Face of Strong Global Headwinds

Source: Government Of Thailand

The World Bank stated that The Thai economy proved to be resilient in the face of strong global headwinds due to strengthening domestic demand stemming from an upswing in private consumption and private investment.

 

According to the World Bank�s “Thailand Economic Monitor: Inequality, Opportunity, and Human Capital,� released on 16 January 2019, amid a global slowdown and elevated trade tensions, the Thai economy is projected to grow by 3.8 percent in 2019 and 3.9 percent in 2020. In 2018, despite external shocks to trade and tourism, growth of the Thai economy is estimated to have accelerated to 4.1 percent.

 

In line with trends in the global economy, a slight economic slowdown is expected in 2019. Public infrastructure spending is expected to accelerate in 2019 and pick up in 2020, as the Eastern Economic Corridor projects are being implemented.

 

The report said that investing in human capital and pursuing economic reforms is critically important for Thailand to become a high-income nation with equal opportunities for all citizens. 

 

Last October, the World Bank launched the Human Capital Index, which measures the productivity level for the next generation of workers relative to their full potential if all education and health outcomes were maximized. While Thailand scores in the upper half of the various indicators compared to ASEAN countries and other upper-middle income country peers, there remains room for improvement.

 

Deputy Secretary-General to the Prime Minister for Political Affairs, Buddhipongse Punnakanta, in his capacity as Government Spokesman, said that Prime Minister General Prayut Chan-o-cha was pleased with the World Bank�s confidence in Thailand�s economic growth, as reported in its “Thailand Economic Monitor: Inequality, Opportunity, and Human Capital.�

 

The Prime Minister agreed with the World Bank that continued implementation of public infrastructure projects and economic reforms could help catalyze domestic demand in 2019 and support medium-term growth.

 

The Government has so far implemented many key economic policies, such as the enforcement of the 2017 procurement law and the 2015 Licensing Facilitation Act. It has also invested in various infrastructure development projects, as well as placing high priority on human resource development, especially on providing underprivileged children with greater access to education and public healthcare. This will help reduce disparities and increase opportunities, which will benefit the Thai economy as a whole.

 

MIL OSI Asia Pacific