But the Thai economy has proven it can resume its full growth potential, he said, reiterating the
"Stimulus measures should facilitate productivity without too much of a burden, comprising infrastructure development, accelerating fiscal expenditures and stimulating private investments," he said.
Concerns about swelling household debt have eased as bank loan growth slowed to 6-7% due to stricter approvals, while corporate and public debts remain manageable, he said.
The Thai economy contracted 0.6% in the first quarter, but growth rebounded to a 0.4% rise in the second quarter, resulting in a 0.1% contraction in the first half.
Tax reform has to be implemented at the appropriate time, he said, citing
A flexible foreign exchange rate and foreign reserves are tools for the central bank to mitigate financial risks. As economists await a US Federal Reserve fund rate hike, external volatility remains a risk factor, he said.
"Our forecast of 5.5% economic growth next year is not too high because it is in line with the country's growth potential and there will be a low base this year," he said.
Other policies from the supply side will support growth, namely education, labour skills and physical infrastructure development, said
Fiscal expenditures are expected to accelerate, lessening the burden shouldered by monetary policy and helping to drive growth, he said.
ACM Prajin Juntong, head of economic affairs for the junta, forecast growth of 3% to 3.5% in the second half and 2% for the full year.
He said the NCPO remained committed to a new general election scheduled for early 2016.
Foreign investors are interested in domestic consumption stimulus, said Ornkanya Pibuldham, country head of
She said it would be better if the junta lifted martial law, as the tourism industry could recover and help the overall economy.
More than 60 large foreign fund companies with combined assets of
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