Finance Minister guarantees that Thailand's economy will grow at full throttle by 4% in 2019, urging government and state enterprise investments to proceed as planned, hoping to drive growth. He criticizes the Bank of Thailand for raising interest rates, which hindered 2018's economic growth.

Mr. Apisak Tantivorawong, the Finance Minister, revealed that the ministry estimates the economy will expand by 4% in 2019, while the previous year's growth is expected to be around 4.1-4.2%. This is considered to be still within the full potential growth range of 4-5%, as targeted by the government in its economic management over the past 3-4 years, effectively cushioning against global economic volatility. He is confident that Thailand will not face another crisis like the one in 1997.

"Currently, the ministry has a medium-term economic management plan, setting a target for at least 4% annual growth to help Thailand escape the middle-income trap more quickly. Although there are significant risks this year, the government will strive to achieve more than 4% growth, even though it won't be easy," said Mr. Apisak.


The Finance Minister stated that the ministry's role is to ensure continuous economic growth and reduce economic disparities, but spending must not compromise fiscal discipline.


This year, with new elections approaching, he acknowledged that it has caused private investors to delay new projects. However, ongoing investments in existing projects continue. Private sector investments have been recovering for over a year, and private consumption has also shown clear signs of recovery. The government is accelerating investments in public and state enterprise projects, as domestic factors are expected to be the main drivers of economic growth this year.


Mr. Apisak emphasized that the government must push for public investment not to slow down, especially during the election period, which brings uncertainty and concerns among private investors. Feedback from foreign investors indicates a decrease in confidence. Additionally, the Bank of Thailand (BOT) recently raised the policy interest rate by 0.25% to 1.75%, necessitating additional fiscal measures from the government to compensate.


"In 2018, Thailand's economy grew by 4.1-4.2%, falling short of the 4.5% forecast by the Ministry of Finance. Despite the government's efforts to stimulate the economy, all parties must collaborate, but there were instances where some hindered progress, requiring the ministry to inject more resources. No one is at fault; everyone must fulfill their responsibilities," Mr. Apisak stated.


The World Bank estimates that Thailand's economy will grow by 3.8% this year, which is typical as the World Bank has consistently projected lower growth rates for Thailand over the past 10-20 years, often adjusting upwards later. In 2018, the economy grew over 4%, but the World Bank only estimated growth at 3.5-3.6%.


Mr. Apisak noted that Thailand's economy is performing best among emerging economies, thanks to the government's hard work in developing economic infrastructure to ensure stable growth and resilience against volatility in the medium and long term.


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