The World Bank projects Thailand's real economic growth this year at 3.5 per cent, being among the countries with lowest growth rate in Asia Pacific.
In the "Global Economic Prospects" report released today, the World Bank forecasts 4 per cent growth rate in 2016 and 2017, on the assumption that oil prices remain low and the recovery in high-income economies strengthens.
For this year, it expects slight growth in exports, while domestic demand will remain weak despite increased social stability.
The region will be affected by a weaker-than-expected recovery in high-income countries, especially in the United States, the Euro Area, Japan, and the Newly Industrialised Economies as this will weaken global and regional trade and impair the region's exports. High-income country exports account for about 60 per cent (Thailand) to 90 per cent of the region's exports.
The report noted that fiscal support may be appropriate in the short-term to boost the Thai economy.
"However, support measures should be framed within a medium-term fiscal plan to strengthen revenue, increase investment, and bolster fiscal institutions.
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