The Thai economy is slated to expand by 2.7% this year, exceeding the previously projected growth for 2025, according to Prime Minister Paetongtarn Shinawatra. Credit for this growth surge is largely attributed to the estimated 28% annual increase in international tourists, predicted to hit the 36 million mark.
Outperforming the growth forecast for 2025, Thailand, the second-largest economy in Southeast Asia, is poised to accelerate its government expenditure with a substantial 960 billion baht ($27.74 billion) funding, Prime Minister Shinawatra disclosed during a recent business conference.
Thailand registered a robust 3% economic expansion in Q3 year on year – a two-year record high, surpassing the market and economist expectations. However, officials and market observers are bracing for mounting challenges in the upcoming year, primarily arising from lingering trade wars.
In contemplation of potential United States’ actions concerning nations it carries trade deficits with, which includes Thailand and China, Thailand’s government is preparing to adopt defensive measures. PM Paetongtarn noted that exports, representing 60% of the nation’s GDP, with 10% catering to the U.S. market, deserve special attention.
Confident in its ability to sustain till its term concludes in 2027, the government guarantees stability in its investment policies and gives assurance to foreign investors.
A comprehensive report on the 90-day performance of the government, along with future strategic initiatives, will be presented on Dec. 12.
In contrast, the state planning division expects a growth within the range of 2.3% – 3.3% in 2025. The Thai economy, having grown a mere 1.9% in the previous year, has been slow in recovering from the pandemic unexpected setbacks in the manufacturing sector and persisting high household debt.
