“Thailand’s [economy] grew by just 0.7pc in 2014 as the expected rebound after last May’s military coup failed to materialise,” the report notes.
“There are signs of improvement, though. Government spending grew by 5.5pc in the Q4 of 2014 (on a year earlier). Tourist numbers rose 7pc in Q4 (on a year earlier).
“But with consumption, investment and exports still weak, growth is expected to be below 4pc in 2015.”
The report draws three general conclusions about Asean economics: Inflation continues to fall “This has enabled central banks in Indonesia, Thailand and Singapore to loosen monetary policy to bolster economic growth.”
Domestic and global developments, including a stronger US dollar, have put downward pressure on some major SE Asian currencies. Thailand was an exception, however, with the baht seeing ups and downs but generally holding its position against the US dollar.
Most major SE Asian economies, the report predicts, are expected to see faster growth in 2015, “although Thailand remains below potential”.