non-residents
Growing consumption by non-residents (% of domestic consumption)
Real policy rate likely to drop further as inflation increases
1-day policy repo rate adjusted for inflation
Key takeaways
- Thailand's economic structure is changing towards a service-based economy
- Further re-positioning business strategy is needed to align with Thailand's new economy
- We expect GDP growth to pick up further in 2017; backed by
o Notably progress in public transportation projects
o Strong tourism receipts
o Improving private investment and consumption
- We expect for a mild rate-hiking trajectory, with one 25bps hike in Q4-2017