The World Bank cut Thailand’s economic growth outlook to 2.7%, from the initial 2.9% estimate for 2020.
This year’s estimated growth is higher than last year’s, when World Bank estimated economic growth to be at 2.5%. The increase was attributed to a recovery in private consumption and investment due to large infrastructure projects.
Thailand’s economy heavily relies on exports, which was hit by the US-China trade war and weak investment.
The country aims to turn into a high-income country by 2037, which GDP says can only be achieved once Thailand sustains long-run growth rates of more than 5%, alongside a 3% productivity growth and 40% investment.
The Thai government countered the slow economic growth in 2019 by implementing monetary policies and a fiscal stimulus package in order to boost economic growth.
Finance Minister Uttama Savayana said that the government is set to propose additional activities to stimulate investment, as well as front-load investment on firms owned by the state.
The finance ministry also considers taking measures to boost private consumption, which is a key factor during an economic slowdown, Savanayana said.