Asia Regional Integration Center

Estimates indicate GDP growth slowed from 6.3% in FY2017 to 5.5% in FY2018 on weaker industrial production. Construction remained an important growth driver despite the slowdown in hydropower projects, which cut the FY2017 9.8% expansion to 5.0%. Services grew a rapid 8.0% on robust expansion in wholesale and retail trade, hotels and restaurants, and transportation and communications. Revenue from international tourism rose by 5.0%. On the demand side, growth in consumption was a major contributor to sustaining growth, as private consumption grew markedly and government current spending remained robust. Growth will likely accelerate to 5.7% in FY2019 and 6.0% in FY2020. Services, particularly wholesale and retail business and tourism, will continue to drive the economy.