Thailand’s economy is expected to grow 3.6 percent this year, up from the 3.4 percent previously projected, thanks to higher public spending and improved exports, the finance ministry said on Monday.

Southeast Asia’s second-largest economy has struggled to grow and lagged regional peers since a 2014 army coup ended months of political unrest. Exports and domestic demand have been weak, putting pressure on the junta to lift domestic activity.

On Friday, the government approved an additional 190 billion baht ($5.4 billion) in spending this fiscal year, which ends in September. It will mainly be spent in rural areas.

Economic growth in 2016 is now estimated at 3.2 percent, compared with 3.3 percent predicted three months ago, Krisada Chinavicharana, a ministry official, told reporters.

He said the ministry now expects exports to increase 2.5 percent this year, rather than the 1.8 percent predicted three months ago.

Exports, a key driver of the economy, rose 0.45 percent in 2016, their first increase in four years.

The ministry is more optimistic than the central bank, which forecasts 2017 GDP growth of 3.2 percent and flat exports.

Official 2016 gross domestic product (GDP) data is due Feb. 20. In 2015, the economy expanded 2.8 percent.

The ministry forecasts the central bank’s policy rate to remain unchanged at 1.50 percent throughout this year.

資料來源：Nikkei Asian Review