Several new office developments are expected to come onstream by year-end. Though borrowing demand will moderate, banks should still see loan earnings growth in the low teens. Following last year's global chip price slump, semiconductor and computer-parts industries are booming. Computer sales to the U.S. are expected to register strong growth. The retail and finance sectors are performing well.
Private investment is up.
But applications for residential projects are on the rise, signaling a future upturn. Hampering an even better performance are public infrastructure projects that are over-budget and behind schedule. Lost sales from the disease are expected to shave 0.3 percentage points off GDP growth. Bangkok's decision July 2 to allow the baht to trade under a managed float, and moves to merge 16 indebted finance companies, buoyed the stock market temporarily. But the perception remains that the administration lacks the firm hand needed to tackle deep problems.