Publication: Thailand Economic Monitor, February 2025: Unleashing Sources of Growth: Innovation, SMEs and Startups
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2025-02-25
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2025-02-25
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The economy is estimated to have grown by 2.6 percent in 2024, surpassing expectations due to an unexpected surge in activity but the recovery continued to lag behind peers. The latest gross domestic product (GDP) release showed that growth picked up at 3.0 percent year-on-year in 2024 Q3. In Q3 2024, the current account surplus rose to 1.5 percent of GDP as the trade balance benefited from robust global demand. Inflation edged up due to the removal of diesel subsidies but remained among the lowest in ASEAN due to remaining energy subsidies and weak domestic demand. Thailand’s financial system remained stable, but credit conditions have tightened amid government efforts to tackle high household debt. Despite the recent rollout of the cash transfer scheme, the fiscal stance turned less expansionary as capital spending slipped due to the delayed budget. The economy is set to gain momentum in 2025, driven by stronger domestic demand and fiscal stimulus, while external factors will slow slightly. With the planned fiscal stimulus and accelerated budget execution, the expansionary fiscal stance will support the economic recovery.
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“World Bank Group. 2025. Thailand Economic Monitor, February 2025: Unleashing Sources of Growth: Innovation, SMEs and Startups. © World Bank. http://hdl.handle.net/10986/42858 License: CC BY 3.0 IGO.”
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