2026.01.0704:23:35UTC+00Thai Economy’s Competitiveness Is Declining, BOT Says

Thailand's central bank, the Bank of Thailand (BOT), announced on Wednesday that the nation's economy is confronting significant challenges, notably including a prolonged decline in competitiveness. Export activities are anticipated to suffer due to US-imposed tariffs. The Thai economy has been grappling with several issues, such as an appreciating currency, the adverse effects of US tariffs, elevated household debt, a border conflict with Cambodia, and political uncertainty in light of upcoming elections scheduled for early February. The BOT commented that deflation risks remain minimal, with medium-term inflation expectations securely anchored within the target range of 1% to 3%. Recent statistics have shown a 0.28% year-over-year decrease in consumer prices for December, marking the ninth consecutive month of decline. BOT Deputy Governor Piti Disyatat indicated at the Reuters Global Markets Forum on Tuesday that GDP growth is expected to have returned to positive territory in Q4 2025, with projections for last year anticipated to reach the 2.2% growth forecast. Government data further revealed a GDP contraction of 0.6% quarter-on-quarter in Q3, marking the first quarterly decline in nearly three years.