Thai economy has not reached full potential: deputy finance minister

THAILAND’S economic growth has not reached its full potential, though there are some signs of recovery, a caretaker deputy finance minister said on Wednesday.

South-east Asia’s second-largest economy is likely to grow between 2.3 per cent and 2.8 per cent this year, Paopoom Rojanasakul said at a business forum.

He said the growth rate had not reached its full potential due to complex factors, including global geopolitical tensions, volatilities in global financial markets and domestic factors such as the political situation and delays in budget spending.

“Despite these challenges, we have confidence in the resilience and adaptability of the Thai economy, and we are seeing signs of economic recovery,” Paopoom said.

New investment is needed to maintain the country’s competitiveness, he added.

Southeast Asia’s second-largest economy grew at a faster pace of 2.3 per cent in the April-June quarter from a year earlier, beating analysts’ expectations.

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Last year’s growth of 1.9 per cent lagged regional peers. REUTERS