The government’s economic stimulus policies and a vigorous tourism sector spurred the expansion of Thailand’s gross domestic product (GDP) in the first quarter, the highest Q1 growth in three years, according to the National Economic and Social Development Board (NESDB).
NESDB Secretary-General Poramethi Wimonsiri said the economy expanded by 3.2% in the first quarter of this year, increasing from 2.8% in the fourth quarter of 2015.
The three-year record growth was the result of spending and investment by the government, household spending, as well as growing tourism, said the board.
Though exports are seen to contract this year, NESDB forecasts the Thai economy to expand by 3.3% for the full year 2016 on the back of government spending and investment, past stimulus measures, low oil prices, and an expected improvement in the agriculture sector in the latter half of the year, reported the National News Bureau of Thailand.
But the secretary-general also warned that global issues—including the weak world economy, decline in commodity prices, currency fluctuations, and strict lending rules by financial institutions—could deflate the country’s economic performance.
The tourism industry, however, is seen to provide a big push to the economy, with 33 million tourist arrivals expected this year against 32.5 million tourists last year, up 10.4%.
Photo: Per Meistrup
