BANGKOK, REUTER -- Thailand's economy is expected to g 3.5 percent this year, up from 3.2 percent initially predicted in April, and rising to 3.6 percent next year, the World Bank said on Thursday.
Southeast Asia's second-largest economy is gaining momentum as farm incomes recover from drought, merchandise and tourism exports rise and fiscal stimulus continues, the World Bank said
in a statement.
In April, it predicted 2018 GDP gth of 3.3 percent for Thailand.
"Thailand has the potential to raise gth to above 4 percent by addressing structural bottlenecks - education equality, services liberalisation and public infrastructure management," it said.
However, risks to the economic recovery include political uncertainty, if reforms and elections become postponed, while a deterioration in the global environment, including increased trade protectionism and a slowdown in the Chinese economy may impede Thailand's export momentum and private investment recovery, the international lender said.
Thailand's economy expanded a better than expected 3.7 percent in the second quarter from a year earlier, prompting the state planning agency to raise its 2017 gth projection to 3.5-4.0 percent from a range of 3.3-3.8 percent.