Thailand ’s economy will recover during the latter half of this year thanks to the payment of the rice pledging scheme and the rise in the SET index, according to Krungsri Asset Management.

In its report, the company said the confidence of the public and investors has greatly improved after the National Council for Peace and Order (NCPO) eliminated the country's long drawn-out political conflicts and cleared out the rice support programme debts.

However, household debts remained the key negative factor hampering the growth of public spending, said the company, adding that it will take more time for benefits from various investment projects to be realised.

The company predicted that the Stock Exchange of Thailand will continue to move forward thanks to several positive factors that will improve the performance of registered companies.

In addition, foreign investors have already begun to come back in droves to the kingdom as political tensions eased up.-VNA