PATTAYA, Thailand – Thailand’s Finance Ministry on Tuesday lowered its 2025 economic growth forecast to 2.2%, down from a previous estimate of 2.4%, citing weak third-quarter performance and localized flooding in Hat Yai.
Spokesperson Winit Wisetsuwannaphum reported that while domestic stimulus measures like the “Khon La Khrueng Plus” and tourism subsidies provided year-end support, the economy faced significant headwinds from a global slowdown and oil refinery maintenance. Despite these challenges, private consumption grew by 3.3%, while exports saw a robust 12.7% increase.
Looking ahead to 2026, the ministry projects economic growth to soften further to 2.0%, dampened by a combination of external and domestic challenges. This outlook is clouded by global trade volatility, particularly concerns over potential U.S. import tariffs and ongoing geopolitical tensions. Domestically, a political transition is expected to delay the 2027 budget by up to three months, leading to a projected 1.7% contraction in public investment. Furthermore, high levels of household and SME debt remain a significant burden, continuing to limit the pace of domestic recovery.
The ministry emphasized the need for fiscal stability and urgent measures to accelerate budget disbursement to mitigate the impact of the projected political transition and global economic slowdown. (TNA)
