Thailand's economic growth rate for this year is expected to register 3.1 percent instead of 2.5 percent as earlier predicted, thanks to effective fiscal policy, increased investments and improved disbursements of funding, said Mr Kiatipong Ariyapratya, senior economist at Bangkok-based World Bank's regional office, on Monday.
He also predicted 3.2 percent growth rate for the next year. But despite the improved performance, he noted that Thailand's growth rate remains lower compared to other neighboring countries with growth rate averaging 4-5 percent.
However, Mr Kiatipong pointed that the Thai economy can grow more than 4 percent annually if the government liberalize the service sector with members of the AEC which will help improve the efficiency in the production sector.
He said that the improved growth rate this year was propped up by tourism industry and the recovery of the private sector's consumption although exports have not shown sign of recovery.
However, he noted that there is a tendency that exports will pick up given the positive global economy and economic recovery in the United States as viewed from the forecast that the US Federal Reserves may adjust interest rate quicker.
Source: Thai Public Broadcasting Service (Thai PBS)