and upgrades in the financial sector to remove obstacles to the development of regional trade and investments. we are confident that japan, thailand and the region can mutually benefit from broader and deeper linkages, both economically and financially. with stronger economic and financial ties, i am excited to see how we, together, will move the region forward and continue to work closely in the global arena. again, it is my great honor to be here tonight with our close and longtime friends who have supported thailand ’ s economic and financial development. thank you very much for your friendship, your commitment, and your contribution to the thai economy. i look forward to further cooperation between our countries for many years to come. thank you very much. bis central bankers ’ speeches

economic growth. the thai economy this year will continue to be driven largely by domestic demand and tourism. exports will likely remain flat or decline further, not only due to subdued global demand but also price effects as export prices have tumbled following the low commodity prices. but, so far the impact on the labor market, even those in export - oriented sectors, has appeared well - contained. notwithstanding the threatening uncertainty around us, tourism continued to be a main growth driver for the thai economy, with expected tourist arrivals of around 31 millions in 2016. the clmv market is another bright spot. the thai exports to clmv market are expanding in accordance with their growing middle class and vibrant economic activities. the clmv market is now accounting for 10. 4 percent of thai total exports, which is already larger than our exports to japan, the third largest export destination. in terms of the domestic economy, we have learned from the latest gdp release that the construction sector has picked up with a strong growth of more than 20 percent in the fourth quarter of last year, thanks to government infrastructure projects. the spillovers from these projects are also benefiting the real estate market. demand for properties continues to expand as we see mortgage loans growing at around 10 percent year on year in recent months. financing conditions have also been favorable. monetary policy stance remains accommodative and in full support of economic recovery. and, despite the slow economic growth, the overall credit and corporate bond issuance to the private sector continues to grow at around 7 percent. the bank of thailand would ensure that the cost of funds is conducive to the ongoing recovery, while also keeping a cautious eye on risks to financial stability. on the fiscal front, the government has become more effective in disbursing and implementing investment projects. government relief and stimulus measures are also essential at difficult times, especially for those severely affected by adverse economic situations, such as from the current drought. but while taking care of the short - term issues, we must not forget to reckon longer term challenges facing the thai economy. thailand is in need of serious initiatives to upgrade and unlock our economic potential in the long term. in this context, we welcome many new initiatives by the government to push ahead with structural reforms. this brings me to the last part of my talk tonight on the way forward for the thai economy, and how we and our partners like japanese businesses may ride together toward sustainable prosperity. let me first touch upon some of the ongoing reforms