© Reuters. FILE PHOTO: Colorful umbrellas are seen in a restaurant as tourists enjoy a beach in the island of Phuket in Thailand January 19, 2023. REUTERS/Jorge Silva/File Photo

BANGKOK (Reuters) – Thailand’s economy may grow as forecast this year, helped by public consumption and investment after the formation of a new government, Deputy Finance Minister Krisada Chinavicharana said on Friday.

Private consumption and tourism recovery are also helping, he told a business event. The ministry has forecast economic growth of 3.5% this year.

The new government led by Prime Minister Srettha Thavisin, who is also finance minister, is seeking to revive Southeast Asia’s second-largest economy and deliver on key campaign promises after an election in May.

The government is due to deliver its policy statement to parliament on Monday.

Thailand’s economy grew 1.8% in the April-June period on the year and 0.2% on the quarter, sharply slowing from the previous quarter’s 2.6% and 1.7%, respectively, as weak exports and lower investments undercut strength in tourism.

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