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FEATURE STORY

Thailand Economic Monitor, December 2012

December 19, 2012

Key Findings

  • Real GDP in 2012 is projected to grow by 4.7 percent. It is supported mainly by household consumption and investments as part of flood rehabilitation and the government’s consumption-stimulating measures.
  • The economy is projected to grow by 5 percent in 2013 as manufacturing production fully recovers from the floods and the global economy sees a modest recovery.
  • Exports in 2013 are expected to grow by 5.5 percent in US dollar terms, compared to only 3.6 percent in 2012. Domestic demand, particularly in investments, will continue its momentum from this year as foreign direct investment (FDI) rises sharply
  • The main challenge in 2013 for Thailand’s growth continues to be the high uncertainty in global economic prospects, particularly related to the Eurozone crisis. To improve growth in the long-term, Thailand should prioritize skills development and the need to reduce inequalities in incomes and human development outcomes.
  • Government spending could be prioritized from short-term stimulus programs and very costly ones like the paddy pledging scheme to long term development programs which targets lower income and vulnerable groups and also helps to reduce regional disparities