Thailand

After a slowdown in infrastructure development in recent years, Thailand’s construction industry now looks set to benefit from a major economic support programme aimed at boosting the country’s competitiveness.

Demand for rental space in the office segment of Thailand’s property market is tipped to rise at double-digit rates this year, outpacing growth forecasts for both the real estate sector and the broader economy, and adding pressure to already limited supply.

A revival in international passenger numbers, coupled with strong domestic traffic, has seen Thailand accelerate its aviation infrastructure investment programme to meet increased demand.

With domestic demand for vehicles likely to remain weak and new levies on the horizon, Thailand will be relying on stronger exports to help carry its automotive industry closer to year-end sales targets. 

Rising domestic consumption and dwindling hydrocarbons reserves will increase pressure on Thailand’s downstream energy and petrochemical firms to secure feedstock, though lower international oil and gas prices have helped reduce production costs for now. 

A gradual increase in economic activity and demand for credit should support both loans and earnings in the Thai banking sector, although a shift away from consumer lending is likely to continue and low interest rates may prompt banks to tap into other revenue streams.