Previously, the UTCC forecast that gross domestic product would grow by 3 per cent this year.

Next year, the UTCC expects GDP to grow by 3.5-4 per cent.

“The better outlook for the economy resulted from the positive outlook for political stability after the approval of the draft charter in Sunday’s referendum. Consumer confidence also increased in the latest survey,” said Thanavath Phonvichai, director of the UTCC’s Economic and Business Forecasting Centre.

He said that with the approval of the charter, about Bt50 billion was expected to injected into the economy from more spending and investment.

Other positive factors included the end of the drought, higher crop prices, expected government investment in the second half of this year, and better foreign-investor confidence.

However, worrying factors include continued export contraction and the low inflation rate. The UTCC now estimates that export value will shrink by 1.6-2.6 per cent this year, compared with a previous projection at 0.8-per-cent expansion. Inflation this year is projected at 0.2-0.6 per cent.

Saowanee Thairungroj, president of the university, said that according to a survey of 384 businesses, they believe that after the approval of the draft constitution, the economy will see stable growth into next year.

She said both Thai and foreign enterprises indicated that they would invest more in the next three to six months thanks to a positive attitude on political stability.

Most enterprises said they would expand their businesses over the next two years, while some would increase employment, seek more loans to increase liquidity, and expand their markets on expectations of better economic growth.

The survey asked businesspeople what they wanted the government to do to promote economic growth. Suggestions included reducing debt for low-income people, strengthening economic growth in rural areas, promoting small and medium-sized enterprises, eliminating corruption, and supporting business growth.