A higher investment budget this year is also tipped to fuel growth.

Headline inflation is estimated at 0.3 per cent for 2016 on the expectation of rising demand pressure.

“In estimating Thai economic indicators, we have to take into consideration risk factors and monitor them closely,” Krisda said. “These risks include fluctuations of global oil prices and [the] weak recovery of the global economy.”

In December and the fourth quarter of 2015, there was a recovery in domestic spending for both consumption and private investment due partly to consistent government stimulus measures since and government spending.

At constant prices, value-added tax collection rose 6.8 per cent and 2 per cent year-on-year in December and the fourth quarter, indicating improved consumption.

For private investment, property tax soared 32.7 per cent and 18.8 per cent year-on-year in December and the fourth quarter.

However, exports continued to contract, reflecting economic slowdowns for the country’s trading partners. December’s exports, in terms of US dollars, shrank 8.7 per cent year-on-year. In the fourth quarter, exports contracted 8.1 per cent.

Headline inflation was -0.9 per cent in December and the fourth quarter following sharp drops in oil and commodity prices.

At the end of December, Thailand’s foreign reserves stayed at US$156.5 billion (Bt5.6 trillion), 2.9 times its short-term external debts.