Business operators expect economic expansion in the next six months to be led by tourism growth and rising demand for industrial goods and farm products, according to the Ministry of Finance.
Improved confidence about the next six months is reflected in the latest Thailand Regional Economic Sentiment Index, based on surveys conducted by the ministry’s provincial offices nationwide and the Federation of Thai Industries, said Pornchai Thiraveja, a spokesman for the ministry.
“Economic confidence in the next six months is upbeat in all regions, especially in the Eastern Economic Corridor, the Northeast, the North and Greater Bangkok where confidence has grown significantly from the previous month on positive factors in the service and industrial sectors,” he said on Thursday.
The surveys found increasing confidence in the East as the government and private sector are promoting tourism. As a result, some operators in the service sector are likely to expand their business.
Confidence in the Eastern Economic Corridor improved due to more positive conditions in the service and industrial sectors. However, farmers in the eastern provinces are worried about unpromising weather conditions, as the arrival of El Nino is expected to result in reduced rainfall.
In the South, confidence increased notably in the service sector because more visitors are arriving and there have been activities to promote tourism in the region.
Confidence also grew among industries in the South because of more orders for products, especially rubber and processed seafood. However, local farmers are concerned about weather fluctuations.
In the Northeast, tourism promotion and an expected increase in the output of industrial goods in the region are lifting confidence, the surveys showed.
Tourism is also a main factor behind the positive economic outlook in the North because promotions for particular groups of tourists are bearing fruit, and more local and international visitors are foreseen. Demand for industrial goods is also said to be rising in the region.
The western region reported growing confidence also because of increases in visitors and demand for industrial products. Meanwhile, farm product output dropped slightly due to weather fluctuations.
In the Central Plains, confidence increased due to tourism promotion and demand for industrial products, especially processed farm products. However, local farmers are worried about possible water shortages in the future.
Economic confidence also increased in Greater Bangkok thanks to rising demand for industrial and farm products, the ministry said.
The World Bank this week upgraded its economic growth forecast for Thailand, saying improved performance will be helped by private consumption growth and a recovery in tourism.
The country’s economy is projected to expand by 3.9% this year, up from a previous forecast of 3.6%, the development lender said in its latest Thailand Economic Monitor report on Wednesday.
