Asia Regional Integration Center

Economic growth slowed to 6.5% in 2018 from 6.9% in 2017. Expansion in most industrial sectors fell. Growth in agriculture and allied activities declined due to severe floods. Meanwhile, growth in services remained robust due to tourism, which saw an 8.2% growth in international tourist arrivals. Economic growth is projected to remain at 6.5% for both 2019 and 2020. The growth slowdown in advanced economies and the country’s major trading partners are downside risks to growth. However, this can be offset by rebounding agricultural growth and accelerating electricity generation as new power plants come on stream. Cross-border expressway and railway construction will support public investment. Tourism will continue to post robust growth, given the continued rise in the number of international visitors.