Optimistic outlook for Thailand’s economy in 2017

Illustrative image (Source: Bangkok Post)

 Bangkok (VNA) – The Joint Standing Committee on Commerce, Industry and Banking (JSCCIB) of Thailand has revised up prediction for the country’s 2017 export growth on the back of brighter local and global economic outlook.

The committee forecasted an average growth rate of 1-3 percent in 2017, higher than its previous projection of 0-2 percent.

With rising exports, the JSCCIB also expects GDP to grow 3.5 – 4 percent this year.

Recovered global economy, stable oil price and exchange rate and better weather situation are drives for the positive outlook.

However, Thailand is also predicted to face new factors that may affect demand and exports and cause an adverse impact to the economy.

Regarding exports, Thailand and Sri Lanka have recently reached a free trade agreement (FTA) in a bid to increase their bilateral trade value to 1.5 billion USD by 2020. The terms of the agreement are being studied and should be finalised during 2017.

According to trade minister Apiradi Tantraporn, Sri Lanka hopes to attract Thai investors especially those specialising in rubber, car parts and electronics.

Sri Lanka is Thailand’s fourth largest trade partner in South Asia while Thailand stands at the fourth place in Sri Lanka’s main trading partners in ASEAN, behind Singapore, Malaysia and Indonesia.  

Their annual trade value stands around 520 million USD.

Thailand’s major exports to Sri Lanka include textiles, automobiles and parts, sugar, plastic pallets, rubber and chemicals. From Sri Lanka, Thailand imports gems and jewellery, and gold and silver bars.-VNA