Thailand Raises 2025 GDP Forecast to 2.4% on Export Growth, Stimulus

Thailand's economy is projected to grow by 2.4% in 2025, an upward revision from earlier forecasts, driven by strong export performance and government stimulus measures like the "Khon La Khrueng Plus" initiative aimed at boosting private consumption. Exports are expected to increase by 10%, supported by accelerated shipments to major markets such as the U.S. and China, while tourism is anticipated to attract 33.5 million visitors this year. Despite this growth, the economy is forecasted to slow to 2.0% in 2026, with exports predicted to decline by 1.5% due to front-loaded shipments designed to avoid U.S. trade tariffs, though tourism is expected to recover to 35.5 million visitors. The Bank of Thailand highlights the challenge of high household debt, among the highest in Asia at 86.8% of GDP, and plans to implement support measures including a government allocation of 10 billion baht to purchase bad debt, aiming to assist around two million people. The central bank projects economic growth of 2.2% for 2025 and a slowdown to 1.6% in 2026, emphasizing the need for debt resolution to sustain economic momentum. The Ministry of Finance continues to promote policies focused on short-term stimulus with long-term benefits, targeting economic stimulation, debt reduction, SME support, increased savings, and future investment while maintaining fiscal health.