Thai Central Bank Anticipates Steady Economic Growth Despite Uncertainties

Thailand’s economy is expected to grow by 2.7% in 2024 and 2.9% in 2025, driven by tourism and exports, despite slow industrial recovery and rising income disparities. Inflation remains low.

Economic Outlook for Thailand

Thailand’s economy is projected to grow by 2.7% in 2024 and 2.9% in 2025, driven primarily by tourism, private consumption, and exports in electronics and machinery. However, the industrial sector’s recovery, particularly in automotive manufacturing, is sluggish, leading to disparities in household income growth. Supportive fiscal policies focusing on infrastructure and foreign investment are expected to stimulate activity.

Monetary Policy and Inflation

The Monetary Policy Committee (MPC) has decided to maintain the policy interest rate at 2.25% to ensure economic stability. With inflation remaining below target—forecasted at 0.4% in 2024 and 1.1% in 2025—thanks to stable oil prices, the MPC emphasizes a strong monetary framework to navigate economic uncertainties while closely monitoring credit growth and government debt relief initiatives.

Risks and Challenges

Despite positive forecasts, external risks such as global economic volatility and geopolitical tensions could impact export performance. Structural challenges, including labor shortages and regional development disparities, necessitate targeted reforms to enhance productivity. The rise in non-performing loans post-COVID-19 highlights the need for vigilant credit monitoring, especially as the EV market influences automotive loans.

Source : Thai Central Bank Anticipates Steady Economic Growth Despite Uncertainties

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