our economic projections. looking back the past few years, the recovery of the thai economy had been largely driven by improvements on the external front from the recovery of global demand. growth drivers were unbalanced ; exports of goods and services acted as the main drivers of growth while domestic sectors were well - below historical average. last year marked a turning point as growth became more balanced. private consumption strengthened, supported by improvements in employment in major sectors as well as government measures to support low income groups, such as the state welfare card project. in addition, private investment expanded with increased investments in machinery and equipment along with greater construction activities as the overall growth became more broad - based. we have seen markedly increasing interest from foreign investors, especially in the eec area. consequently, in 2018 the thai economy expanded on a solid footing, with growth of 4. 8 percent in the first half, before moderating in the second half due to slowing global demand. this weaker global demand was largely a result of slower economic growth in a number of major trading partners ; a number of country - specific transitory factors ; and uncertainties surrounding trade tensions between the us and china. nevertheless, thanks to more balanced growth engines, the thai economy grew 4. 1 percent in 2018, an improvement from 4. 0 percent growth in 2017. it was also the first time in a decade that the thai economy registered consecutive annual growth of 4 percent. looking ahead, the thai economy is projected to continue to expand around its potential, with growth this year will slightly moderate to 3. 8 percent as slower growth of major trading partners weighs on the export sector. domestic demand would remain the key growth driver, as 2 / 9 private consumption continues to be supported by government welfare measures and underpinning factors, such as employment and consumer confidence, remain strong. furthermore, private investment is expected to continue to improve, aided by more investments in the eec area, further progress in the public - private partnership infrastructure projects, and relocation of production bases to thailand in industries such as electronics, automotive parts, and rubber. meanwhile, the tourism sector is expected to continue to expand mainly due to improved confidence and return of chinese tourists. it is expected that the number of foreign tourists will exceed 40 million this year. ladies and gentlemen, although our outlook indicates a sustained growth, a number of risk factors remain. these include ( 1 ) the potential impacts from us protectionist policies and trade tensions with china, which so far have had mixed effects on the thai

and was completed in march 2007, when the last commercial bank licensed under the plan started its operation. key initiatives under the first plan involved 1 ) improving financial access, 2 ) increasing efficiency of the banking sector through removal of regulatory obstacles to market development and through consolidation of smaller financial institutions, and 3 ) strengthening market discipline through more stringent information disclosure and enhanced consumer protection mechanism. through licensing reform and the so - called one - presence policy, there has been a significant consolidation and reduction in the number of financial institutions under the supervision of the bank of thailand. while evaluation of fsmp phase i is currently being undertaken, there is evidence to suggest that the banking sector has shown improvement in both operating efficiency and resiliency. turning to the second - phased financial sector master plan, the overarching objective is to improve efficiency, competitiveness, and resiliency of the financial sector. the goal is that financial institutions can more effectively perform their intermediary functions and meet the challenges of a rapidly changing environment. moreover, we expect the financial sector advancement to also contribute to the overall economic and social development of the country. thus, the plan will also aim to promote a more complete financial access, ensuring that all needed financial services are available at appropriate prices to bankable users in all market segments. i envisage that these objectives would be achieved through policy measures under three main pillars. the first pillar will aim to improve financial institutions ’ operational efficiency by reducing unnecessary costs that stem from outdated or overly restrictive regulations and approval process. in this regard, private sector ’ s input will be a key ingredient in improving the regulatory environment to one that is more conducive to business efficiency and innovation, while ensuring that prudential considerations both at individual and systemic levels are not compromised. the second pillar will look at improving efficient intermediary functions of the financial sector by increasing the level of competition through further deregulation and liberalisation. deregulation would involve expanding business scope and enhancing the role of existing players, including banks, non - banks and other niche banks. one of the deciding factors for the optimal number and type of new players would be the value added that these new institutions, be they universal banks or niche banks, could bring to the financial system, such as technical expertise and product innovations. set against these benefits, however, are potential risks to financial stability stemming from disorderly competition and exits. thus, liberalisation considerations will be grounded on a robust supervisory framework and be appropriately sequence