Thai economy likely will grow 3% in the first quarter of 2015, bolstered by tourism, private consumption and government spending, according to the National Economic and Social Development Board.
NESDB secretary-general Arkhom Termpitayapaisith said Thursday that tourism, which accounts for 10% of gross domestic product, should be a major contributor to growth with the Tourism and Sports Ministry reporting a 28% increase in arrivals for the year through April 15. That generated income of 300 billion baht, he estimated.
Exports in the first two months, however, contracted by 4% due to slow economic growth everywhere except the United States. The government said cross-border trade will partly offset that, growing 7%-10% in the first two months of this year.
"The agency still predicts export growth at 3.5% this year and economic growth of 3.5-4.5%," he said.
Mr Arkhom said household consumption was projected to grow by 1-2% in the first quarter due to low commodity prices and drought in many areas.
Tax-revenue collection in the first five months of fiscal 2015, which began in October, rose by 0.9% year-on-year. For the first two months of the calendar year, revenue increased 1.1% and receipts from the value added tax rose by 0.5%, both signs of improvement in household spending, he said.
He said 55% of the 60 billion baht allocated for construction by the Highway Department would be disbursed by May, up from the normal 50%.
The government also borrowed 40 billion baht for the construction of highways and rural roads. All contracts will be signed within April and construction will wrap by December.
The first phase of six 900km dual-track rail lines worth a total 117.4 billion baht is expected to open for bidding during the second half of the year.