Business confidence stimulated by domestic drivers

Various research institutions have forecast a slight decline in Thailand’s economic growth in 2019. The expected slowdown stems from cooling Chinese import demand due to the trade war between the US and China, higher oil prices, rising interest rates and weaker global economic prospects.

So far, the dispute between the US and China has had only a mild impact on Thailand and may even benefit several sectors, such as agriculture, automotive and electronics. The tourism sector, which has played a key role in the country’s economic success, is expected to expand.

The tourism industry’s total revenue in 2017 was recorded at THB2.75 trillion1 and was expected to increase to THB3.1 trillion in 2018. The Tourism Authority of Thailand (TAT) anticipated that the industry would remain strong through 2019. Revenue next year is projected to rise at least 10% from 2018 to THB3.4 trillion.

Thailand is also seeing domestic demand become a larger growth driver. Analysts and government agencies predict that growth in 2019 will be mainly driven by private consumption, government expenditure and private investment. Private demand will rise with solid consumer spending and business investment, while the government will accelerate infrastructure projects, many of which are already under way.

Based on these factors, Thai CEOs expect Thailand’s economic growth will continue throughout 2019, resulting in confidence in revenue growth in the next 12 months.

^{1 The Tourism and Sports Ministry}