27.01.202606:54:43UTC+00Thailand Cuts 2025 GDP Growth Forecast to 2.2%

Thailand's Finance Ministry anticipates a 2.2% economic growth rate for 2025, which is a slight decrease from the previous projection of 2.4%, and marks a slowdown from the 2.5% growth expected in 2024. This deceleration is attributed to a moderation in both exports and domestic demand, as stated by Vinit Visessuvanapoom, the head of the Ministry's Fiscal Policy Office, during a press conference, according to Reuters. For the current year, GDP growth is projected to hold at 2.0%, with export growth anticipated at 1.0%. This contrasts with an earlier prediction of a 1.5% decline in exports. Looking further ahead, the central bank projects a 1.5% economic growth for 2026. Thailand's economy is currently navigating several challenges, including US tariffs, a strengthening baht, substantial household debt, border tensions with Cambodia, and political volatility with upcoming elections in early February. The baht has appreciated approximately 1.4% against the US dollar this year, following a significant 9% increase in 2025, posing a threat to the competitiveness of the nation’s export and tourism industries.