IMF expects Thai economic growth at 3% in 2016

People at a market in Bangkok on Feb 29.
People at a market in Bangkok on Feb 29.PHOTO: REUTERS

BANGKOK (REUTERS) - The International Monetary Fund (IMF) projects Thailand's economy will grow 3 per cent this year and 3.2 per cent next year, saying a recovery is expected to accelerate modestly.

"A slight improvement in confidence and low energy prices foreshadow a pickup in private consumption. Public investment would remain a key driver, rising over the next few years and crowding in private investment," the IMF said in a statement on Monday (March 28).

The IMF also said there is room for further monetary easing"given the lingering negative output gap, negative headline inflation, low core inflation and expectations, and downside risks."

The Bank of Thailand has forecast Thai economic growth of 3.1 per cent this year and 3.3 per cent next year.

The World Bank expects Thai growth of 2 per cent in 2016.