Thailand's Fiscal Policy Office (FPO) raised its gross domestic product (GDP) growth projection for the year to 5.7 percent, from the previous forecast at 5.5 percent, Bangkok Post online reported on Thursday.

The state agency, under the Finance Ministry, attributed its economic growth revision to faster than expected economic recovery after the production sector was severely hit by the great flood late last year.

The FPO said the rapid recovery in the industrial sector was boosted by a substantial increase in domestic consumption and private investment since the beginning of this year.

The office expected domestic consumption and private investment would continue to increase on the back of the government's post flood investment in infrastructure development megaprojects.

It said investment in the industry sector to rehabilitate its production capacity was also another reason behind the improvement.

The office projected that the inflation rate for the year would stand around 3.5 percent. It set the inflation framework at between 3.0 percent and 4.0 percent.