Economy

Although buoyed by decades of steady expansion, Thailand – South-east Asia’s second-largest economy – saw growth falter in recent years in the wake of political unrest and challenging external conditions. However, falling global oil prices combined with stimulus packages benefited the economy and spurred a moderate recovery in 2015. The government is set to launch 20 infrastructure projects before 2018, covering rail, roads, air transport and ports, as part of an investment plan running until 2020. Public-private partnerships are expected to comprise 20% of the plan’s budget. Concerns about China and depressed commodities prices will continue to weigh on economic growth, although Thailand remains well positioned to manage these challenges, with robust international reserves and rising government spending expected to support and sustain recovery into 2017. This chapter contains a viewpoint from Veerathai Santipraphob, Governor, Bank of Thailand.