Growth should accelerate in 2016 as agriculture recovers and foreign direct investment increases. Regional economic integration will be an important driver of growth given the better economic prospects in neighboring India and Thailand.
Thin external and fiscal buffers are risks, along with ethnic and sectarian tensions. Whether the new government can maintain the reform momentum will be watched closely. Also, the effects of El Niño are expected to exacerbate the central region dry zone, while bringing unseasonable rainstorms to the southern geographical stem.
|Broad Money Growth 1||16.2 (Oct16)||16.2||16.5|
|Headline Inflation Rate 2||6.6 (Dec16)||3.5||9.8|
|Merchandise Export Growth 2||-13.0 (Jun16)||-13.0||4.2|
2 y-o-y, %.
|Source: CEIC database.|