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While the Bank of Thailand last week lowered its gross domestic product forecast for the country to 3.8 per cent from 4 per cent, Citi is looking to a slow but firming momentum in the economy this year. It sees the potential for foreign direct investment to add 4 per cent to GDP. Foreign direct investment reached 483 billion baht (HK$115 billion) last year. Citi retains its growth forecast of 3.5 per cent. Its positive view is also supported by the outlook for government spending on carryover projects and programmes and sustained tourist arrivals. Last week, the central bank cut its policy rate by 0.25 percentage point to 1.75 per cent. Citi believes the potential remains for a further cut in interest rates.
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