Thailand’s economy projected to grow 4.2 percent this year hinh anh 1Chaloem Mahanakhon Expressway in Bangkok, Thailand (Photo: VNA)

Bangkok (VNA) – The Fiscal Policy Office (FPO) of the Thai Ministry of Finance forecast the country’s economic growth rate in 2018 at 4.2 percent and revised the growth last year up to 4 percent from the previous 3.8 percent.

According to a recent FPO report, public investment will rise by 11.8 percent in 2018, compared to the 1.1-percent decline last year, mainly thanks to infrastructure projects.

Private investment is expected to increase by 3.8 percent compared to the 2.1 percent hike in 2017. Meanwhile, private consumption is set to grow 3.5 percent thanks to a higher minimum wage.

The Thai government recently rolled out several measures to mitigate the minimum wage increase’s influence on small- and medium-sized enterprises (SMEs).

Accordingly, SMEs with annual revenue of less than 100 million THB and no more than 200 employees can deduct 1.5 times of the amount of the wages paid to their employees from their taxable revenues.

A 5 billion THB fund will also be created to organise seminars and training courses for about 50,000 SMEs. The government will also exempt 50 percent of corporate income tax for three years for businesses to buy machinery, internet or digital systems for business management.-VNA