Thailand's 2024 GDP Growth Adjusted to 2.9% Amid Trade Concerns

Thailand's economy grew by 2.5% in 2024, falling short of the anticipated 2.7%, primarily due to contractions in the manufacturing and agriculture sectors. The National Economic and Social Development Council reported a 3.2% increase in GDP for the final quarter, which also missed expectations. The World Bank forecasts a slight growth of 2.9% for 2025, driven by a rebound in investment and anticipated tourism recovery to pre-pandemic levels, but warns of challenges from global trade uncertainties and reduced demand from major partners like the US and China. Concerns over the impact of US trade policies, particularly under Trump, add to the economic risks, as Thailand is heavily exposed to potential tariffs. While private consumption is expected to be supported by fiscal measures, high household debt and stricter lending could impede growth. The Bank of Thailand is maintaining a cautious monetary stance, with a key interest rate of 2.25%, as it prepares for a policy review later this month.