Election Results to Dictate Outlook of Thailand’s Recovering Economy

Thailand’s economy experienced better than expected growth in the first quarter due to a rebound in tourism. The National Economic and Social Development Council announced that the economy grew by 2.8% in the first quarter of 2019, higher than the median 2.3% growth estimated by economists. However, the outlook for the economy depends on the political stability of the country following the recent election. The Forward Party and Pheu Thai Party, pro-democracy parties, won 287 of the 500 seats in the House of Representatives, but it is not yet clear whether they will be able to form a government. The country’s political stability is important for investor confidence in the economy. The Thai central bank may continue to withdraw stimulus, given the country’s GDP growth and recovery in the tourism sector. The NESDC left its forecast for tourist arrivals unchanged at 28 million. The number of Thai tourists returning to the country is expected to reach 1 million per month from October.