Thai economy to grow 2.7% this year, beat 2025 forecast, PM says
2024.11.20 23:53
BANGKOK (Reuters) – Thailand’s economy is expected to grow 2.7% this year, helped by an anticipated annual rise of 28% in foreign visitors to 36 million, Prime Minister Paetongtarn Shinawatra said on Thursday.
Southeast Asia’s second-largest economy will grow more than forecast in 2025 and the government will accelerate investment spending of more than 960 billion baht ($27.74 billion), she told a business forum.
“The economy is in the recovery phase. In each quarter, we have done better than expected” she said.
Thailand’s economy grew 3% in the July-September quarter annually, the fastest pace in two years and beating expectations. But officials and analysts expect increased challenges next year, including the fallout from trade wars.
Paetongtarn said the government would seek support measures if the United States takes action on countries with which it has trade deficits, which would include Thailand and China.
Thailand’s exports are accounted for 60% of gross domestic product, with 10% of shipments going to the United States, she added.
The government is confident it will stay in power until the end of its term in 2027 and foreigners can be assured that investment plans will not be changed, Paetongtarn said.
The government will announce its 90-day performance on Dec. 12, including future policies.
The State planning agency this week predicted growth of 2.3% to 3.3% in 2025.
Last year’s growth was 1.9%, lagging regional peers. The economy has recovered from the pandemic only slowly, hobbled by a weak manufacturing sector and high household debt levels.
($1 = 34.61 baht)
