Thailand Says GDP to Rise

Thailand’s economy is expected to grow 3.6% this year, up from the 3.4% previously projected, thanks to higher public spending and improved exports, the finance ministry said on Monday, Nasdaq reported. Southeast Asia’s second-largest economy has struggled to grow and lagged regional peers since a 2014 army coup ended months of political unrest. Exports and domestic demand have been weak, putting pressure on the junta to lift domestic activity. On Friday, the government approved an additional 190 billion baht ($5.4 billion) in spending this fiscal year, which ends in September. It will mainly be spent in rural areas. Economic growth in 2016 is now estimated at 3.2%, compared with 3.3% predicted three months ago, Krisada Chinavicharana, a ministry official, told reporters. He said the ministry now expects exports to increase 2.5% this year, rather than the 1.8% predicted three months ago. Exports, a key driver of the economy, rose 0.45% in 2016, their first increase in four years. The ministry is more optimistic than the central bank, which forecasts 2017 GDP growth of 3.2% and flat exports.