Thai Downgrades GDP Growth Outlook

(RTTNews) - Thailand's economy is projected to expand at a slower than previously estimated pace in 2025 as trade tariffs are likely to dampen exports in the second half of the year, the National Economic and Social Development Council, or NESDC, said Monday.

Southeast Asia's second largest economy is forecast to grow in the range of 1.3 percent to 2.3 percent this year. This was down from the previous outlook of 2.3 percent- 3.3 percent.

In the first quarter, gross domestic product expanded 3.1 percent on a yearly basis, slower than the 3.3 percent growth in the fourth quarter.

Quarter-on-quarter, the economic growth improved to 0.7 percent from 0.4 percent in the preceding period.

The government lowered exports growth projection to 1.8 percent in 2025 from 3.5 percent. Exports had advanced 5.8 percent in 2024.

Likewise, growth outlook for private consumption was downgraded to 2.4 percent from 3.3 percent. Meanwhile, the forecast for government spending was retained at 1.3 percent.

Total investment is expected to grow 0.9 percent, down from the previous estimate of 3.6 percent.

Data showed that the annual growth in the first quarter was underpinned by the 12.3 percent increase in exports. A similar faster growth in exports was last seen in the first quarter of 2022. At the same time, imports grew only 2.1 percent.

Household and government spending and investment logged weaker growth in the first quarter.

Private consumption growth eased to 2.6 percent from 3.4 percent. Growth in government spending softened to 3.4 percent from 5.4 percent. Investment climbed at a slower pace of 4.7 percent after a 5.1 percent gain.