Thailand growth began to moderate in early 2019 in the context of intensifying risks.
- The Thai economy is projected to expand by 3.5 percent in 2019 and by 3.6 percent in 2020.
- Growth slowed to 2.8 percent in the first quarter of 2019, falling below 3 percent for the first time since mid-2015.
- A decline in public investment compounded the negative impact of external headwinds on the Thai economy, but private investment has remained buoyant.
- Solid private consumption continues to drive growth on the demand side.
- Policy continuity and the implementation of planned public investments will be vital to sustain growth.
- The government¡¯s fiscal and monetary policy stances are expected to remain accommodative, and Thailand¡¯s macroeconomic fundamentals are strong.
This edition of the Thailand Economic Monitor highlights the importance of harnessing financial technology (fintech) for financial inclusion.
- Fintech is transforming financial services and experiencing explosive growth in emerging markets.
- Thailand¡¯s nascent fintech subsector is rapidly evolving.
- But the sector¡¯s potential to support financial inclusion remains largely untapped.
- The expansion of digital financial services could help alleviate rising levels of income inequality and support shared prosperity.
- This Thailand Economic Monitor provides five policy measures to help leverage the full potential of fintech to support financial inclusion in Thailand:
- Lifting barriers to firms seeking to enter the financial sector
- Encouraging collaboration between traditional banks and fintech firms
- Improving coordination among regulators for example on regulatory sandboxes
- Encouraging public-private and private-private collaboration
- Supporting initiatives such as incubators and early-stage seed funding vehicles, as well as providing matching grants to help a fintech firms to take off in Thailand.