The World Bank has raised its 2012 growth projection for Thailand to 4.7 per cent, from the previous forecast of 4.5 per cent.

Ms Kirida Paopichit, the bank’s senior economist said the Thai economy has been boosted by the government’s post-flood development projects and stimulus measures, increasing domestic consumption and private investment.

She expected the Thai economy to grow by about five per cent next year, and exports to expand by around 5.5 per cent, up from the earlier three per cent forecast for this year.

Risk factors that could affect economic expansion included the eurozone debt crisis, the conflict over the fiscal cliff in the US, internal political problems, the impact of populist policies and the 300 baht daily wage that could erode trade competitiveness in the business sector.

The senior economist projected that the country’s public debt would increase from 45 per cent of gross domestic product this year to almost 50 per cent in 2013, as the government would have to acquire loans for financing its water and flood resources management projects, reports Bangkok Post