State spending trusted to boost GDP
Despite muted sentiment in the fourth quarter, the government is highly confident the economy could end this year with an estimated growth of 3.2-3.3%. Deputy Prime Minister Somkid Jatusripitak said accelerated state spending on infrastructure projects and growing tourism will shore up economic growth in the fourth quarter and help offset weak sentiment as people mourned the passing of the King. Mr Somkid said the government is estimated to spend a combined 293 billion baht in 2016 and 2017 on infrastructure development, of which some projects have begun construction and some are scheduled to start next year. Projects that have commenced include road expansion and motorways linking Pattaya and Map Ta Phut, together worth 28.2 billion baht. Projects due to be built next year include the high-speed train linking Bangkok and Rayong worth 153 billion baht, which will be developed under the public-private partnership scheme that is now pending State Enterprise Policy Office’s consideration.
