Thailand Economic Monitor, January 2020

Abstract

Thailand’s economic growth slowed to 2.4 percent in Q3 2019, driven by cyclical factors, notably weak external demand and heightened global uncertainty. The downturn has also exposed structural constraints, which is reflected in the sluggish growth of public and private investments. TheGovernment has responded swiftly to the growth slowdown, through accommodative monetary policies and countercyclical fiscal stimulus. Going forward, additional policies to enhance the effectiveness of the stimulus, with a focus on implementing major public investment projects andimproving the efficiency of public investment management could maximize the growth impact. In the long term, structural reforms such as enhancing competition in the domestic economy, increasing openness, and promoting an eco-system for firm innovation in order can boost productivity.