The government expects the service sector to continue recording positive growth this year, particularly in real estate, accommodation and food, wholesale and retail, and medical and wellness.
Pimchanok Vonkorpon, director-general of the Trade Policy and Strategy Office, said the country's trade in services is expected to keep growing, especially in real estate and construction, thanks to state and private investment.
The health and wellness sector is also predicted to grow based on the government's policy to promote S-curve industries and tourism's continued surge.
But Ms Pimchanok said the office remains concerned about the expanding property market because it may lead to a bubble.
She said the property market's growth is primarily driven by swelling mortgages and higher land prices, not from the financial performance of property developers.
The Commerce Ministry reported yesterday that the first-ever Trade in Services Performance and Potential Index stood at 3.4% in 2017, indicating that the performance of trade in services remained strong in real estate, hotels and food, and wholesale and retail.
The index was developed on the order of Deputy Prime Minister Somkid Jatusripitak and is based on 12 indicators within the categories of performance, potential and confidence.
The index includes 13 sectors: construction, wholesale and retail, transport and warehouse, accommodations and food, information and communications, financial services and insurance, real estate, science and academic activities, management and supporting services, education, healthcare, arts and entertainment, and others.
The Commerce Ministry said trade in services contributed 64.3% of GDP in 2016, up from 63.7% in 2015 and 62.3% in 2014.
The agriculture sector accounted for 8.5% of GDP in 2016, down from 9% in 2015 and 10.1% in 2014, while manufacturing contributed 27.2% in 2016, down from 27.3% in 2015 and 27.6% in 2014. Thailand's GDP was 14.5 trillion baht in 2016, up from 13.7 trillion in 2015 and 13.2 trillion in 2014.
