Publication: Thailand Economic Monitor, July 2025: Digital Pathways to Growth
Loading...
Other Files
31 downloads
20 downloads
Published
2025-07-21
ISSN
Date
2025-07-21
Author(s)
Editor(s)
Abstract
The Thailand Economic Monitor (TEM) reports on key developments in Thailand’s economy over the past six months, situates these changes in the context of global trends and Thailand’s longer-term economic trajectory, and updates Thailand’s economic and social welfare outlook. Each edition of the TEM also provides an in-depth examination of selected economic and policy issues and an analysis of Thailand’s medium-term development challenges. The TEM is intended for a wide audience, including policymakers, business leaders, financial-market participants, and the community of analysts and professionals engaged in Thailand’s evolving economy. In conclusion, Thailand's digital transformation journey requires a comprehensive approach to address infrastructure, skills, and regulatory challenges. The report calls for coordinated policies to accelerate digital adoption across sectors, expand broadband, improve the usage of data and AI, and promote innovation, positioning Thailand to unlock new markets and drive competitiveness and economic diversification. By leveraging digital technologies and fostering an environment conducive to innovation and growth, Thailand can raise its growth trajectory and accelerate towards high-income status, ensuring higher value-added jobs and social equity for its citizens.
Link to Data Set
Citation
“World Bank Group. 2025. Thailand Economic Monitor, July 2025: Digital Pathways to Growth. © World Bank. http://hdl.handle.net/10986/43469 License: CC BY 3.0 IGO.”
Digital Object Identifier
Associated URLs
Associated content
Other publications in this report series
Journal
Journal Volume
Journal Issue
Related items
Showing items related by metadata.
Publication Thailand Economic Monitor, July 2024(Washington, DC: World Bank, 2024-07-09)The economic recovery faltered due to global and domestic headwinds as growth fell to 1.5 percent year-on-year in 2024 Q1. The current account remained positive at 2.2 percent of gross domestic product (GDP) in Q1 2024 but underlying weaknesses persist. Inflation has turned positive but remained the lowest among emerging markets due to energy subsidies and a weak recovery. The financial system remained stable amid improving but weak profitability, although risks associated with high levels of household debt persist. The fiscal stance has become less expansionary as capital spending lapsed due to the delayed budget. The economy is projected to recover in 2024 supported by sustained private consumption as well as tourism and goods exports recovery. Thailand faces the mounting challenge of reconciling fiscal sustainability and short-term stimulus. Empowering Thailand’s secondary cities would be a significant paradigm shift. The possibilities suggested in this chapter cannot be realized through marginal adjustments to existing policies. An intergovernmental fiscal policy that puts more responsibility and accountability on local government, and frees communities to plan the futures, will require systemic change. The transition will require legislative and institutional reforms to grant LAOs increased authority while ensuring greater accountability. It will require local planning processes that are responsive and adaptable to market demands for land, housing, labor, and transportation.Publication Thailand Monthly Economic Monitor, 30 July 2024(Washington, DC: World Bank, 2024-07-31)Recent indicators of economic activity point to a gradual recovery, supported by improvement in manufacturing production, goods exports, and tourism. The number of tourist arrivals expanded, nearing pre-pandemic levels. However, private consumption moderated. Growth is projected to accelerate from 1.9 percent in 2023 to 2.4 percent in 2024. The Bank of Thailand has maintained a neutral policy rate and anticipates inflation to return to its target by Q4 2024. The banking sector remained stable with adequate buffers, though vulnerabilities in household debt and small and medium enterprise (SME) non-performing loans (NPLs) persist. The government has approved a flagship Digital Wallet program, expected to boost gross domestic product (GDP) in the short term and rolled out a soft loan program to support SMEs. The Thai baht depreciated due to delays in the Fed’s easing cycle and ongoing concerns about the Thai economy.Publication Thailand Monthly Economic Monitor, October 2025(Washington, DC: World Bank, 2025-10-22)Fiscal conditions remained stable, with a modest widening of the deficit to 3.1 percent of GDP. New stimulus measures are expected to support short-term demand without breaching the public debt ceiling. Inflation stayed negative, reflecting lower energy and food prices amid subdued domestic demand. The central bank kept the policy rate unchanged, citing limited policy space. Thailand’s growth momentum has slowed further as manufacturing activity and services weakened as projected. Tourism remained subdued, largely due to fewer Chinese visitors. Goods exports also slowed as earlier front-loaded orders faded, particularly in agriculture and industrial goods. The Thai baht depreciated in early October as the US dollar appreciated and the current account turned negative.Publication Thailand Economic Monitor, July 2019(World Bank, Bangkok, 2019-07-08)The Thailand Economic Monitor (TEM) consists of two parts. Part 1 of the TEM reviews recent economic developments, examines the country’s macroeconomic outlook, and analyzes the impact of key policy changes. Part 2 focuses on a specific subject with critical implications for Thailand’s long-term growth prospects. This edition of the TEM analyzes the power of financial technology (fintech) to support financial inclusion, a key element of the 20-Year National Strategy.Publication Thailand Economic Monitor, February 2025(Washington, DC: World Bank, 2025-02-25)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.
Users also downloaded
Showing related downloaded files
Publication Kyrgyz Republic Country Climate and Development Report(Washington, DC: World Bank, 2025-11-03)This Country Climate and Development Report (CCDR) on the Kyrgyz Republic aims to support the country’s development goals amid a changing climate. The CCDR considers two policy scenarios up to 2050: the business-as-usual (BAU) and high-growth scenarios. As it quantifies the likely impacts of climate change on the Kyrgyz economy between now and 2050, the report highlights key government actions to best prepare for and adapt to climate impacts (referred to as “with adaptation” measures), with a particular focus on the time horizon up to 2030. The CCDR also outlines a path to net zero emissions by 2050 (referred to as “with mitigation” measures, “decarbonization,” or, simply, “net zero 2050”), highlighting associated development co-benefits.Publication Tajikistan Country Climate and Development Report(Washington, DC: World Bank, 2025-03-28)The Tajikistan Country Climate and Development Report (CCDR) explores the impact of climate change and global decarbonization on Tajikistan’s development. It identifies key areas to enhance climate resilience and deepen decarbonization and outlines priority recommendations for a successful green transition in Tajikistan, requiring structural reforms, climate-conscious policies, and inclusive strategies for a resilient and sustainable future. Despite economic growth and poverty reduction over the past two decades, Tajikistan's reliance on natural resources and remittances has led to unsustainable development, depleting natural capital and limiting job creation. The government’s green transition plan focuses on renewable energy, promising energy security, economic growth, and regional electricity exports. However, further efforts are needed for a resilient development path, including a complementary reform program to bring significant economic benefits, climate adaptation, and low-carbon development that will benefit Tajikistan and Central Asia's electricity systems. Climate change poses significant risks, threatening water security, agricultural productivity, and infrastructure, potentially reducing GDP per capita by 5-6% by mid-century and pushing 100,000 people into poverty. Additional adaptation measures are crucial, focusing on water management, resilient landscapes, climate-smart agriculture, and disaster risk management. A low-carbon development pathway offers a more resilient and prosperous future, with near net-zero emissions in energy and waste sectors by 2050, boosting economic growth, and job creation and reducing air pollution. Achieving these goals requires substantial investments and institutional reforms to mobilize private capital and attract green foreign investment. Development partners can provide financial assistance, technical expertise, and capacity building.Publication Gabon Country Climate and Development Report(Washington, DC: World Bank, 2025-11-01)Gabon has a unique opportunity to drive inclusive growth, reduce poverty, and build a resilient post-oil economy, with climate action accelerating progress toward these goals. The country’s main development challenge is achieving higher growth and poverty reduction, as stronger growth is needed regardless of projected climate shocks to create jobs, raise living standards, and enable a viable post-oil economy. While pursuing growth-promoting economic reforms, climate action that prioritizes people must remain central to its development pathway. However, climate change risks exacerbating poverty and regional inequalities in a country already facing long-term challenges in expanding economic opportunities and basic public services, especially in rural areas. Climate shifts compound these challenges, making stronger private sector-led growth driven by reforms essential for resilience, diversification, job creation, and poverty reduction, though targeted investments in adaptation will still be required to mitigate climate shocks. Using a whole-of-economy approach, the Gabon Country Climate Development Report (CCDR) estimates that climate change impacts could result in GDP losses of 3.5 to 5.3 percent per year through 2050 compared to a business-as-usual baseline trajectory.Publication Jobs in a Changing Climate: Insights from World Bank Group Country Climate and Development Reports Covering 93 Economies(Washington, DC: World Bank, 2025-11-05)The World Bank Group’s Country Climate and Development Reports (CCDRs) provide a crosscutting look at how countries’ development prospects, and the job opportunities they offer to their people, can be threatened by climate impacts and supported by climate policies. Climate change and policies affect jobs through impacts on productivity, energy and material efficiency, and physical, human, and natural capital. They can also transform employment opportunities, especially through complementary measures that help workers and firms adapt to and benefit from new technologies and production practices. Prepared by the World Bank, the International Finance Corporation (IFC), and the Multilateral Investment Guarantee Agency (MIGA), CCDRs integrate country perspectives, climate science and economic modeling, private sector information, and policy analysis to assess how countries can successfully grow and develop their economies and create jobs despite increasing climate risks and while achieving their climate objectives and commitments. Each CCDR starts from the country’s development priorities, opportunities, and challenges, and is developed in close consultation with governments, businesses, and civil society, ensuring the recommendations reflect national priorities. By combining evidence on adaptation, resilience, and emissions pathways, CCDRs highlight where climate action can reinforce development and job creation, and where targeted policies are needed to manage risks and smooth labor market transitions. Taken together, these elements can help create local jobs, ensure economic transitions are just and inclusive, and equip workers and firms to navigate the disruptions and opportunities of a changing climate and changing technologies.Publication Comoros Country Climate and Development Report(Washington, DC: World Bank, 2025-06-18)The Union of the Comoros (The Comoros) has significant vulnerability to climate change-related risks but has considerable opportunities to strengthen preparedness and resilience against these challenges. According to the Notre Dame Global Adaptation Index, the Comoros is the 29th-most vulnerable country to climate change and the 163rd most ready to adapt (out of 191). The Comoros archipelago is exposed to many natural hazards that adversely affect the country’s natural capital, people, and physical infrastructure. In 2014, the economic cost of climate-related disasters was estimated at 5.7 million dollars annually, equivalent to 9.2 percent of Gross Domestic Product (GDP). Between 2018 and 2023, as many as 11 tropical depressions or cyclones impacted the country, with Cyclone Kenneth causing the greatest damage, equivalent to 14 percent of GDP, resulting in total economic growth falling from 3.6 percent in 2018 to 1.9 percent in 2019. More than 345,000 people (40 percent of the population) were affected by the cyclone, with 185,000 people experiencing severe impacts and 12,000 people displaced. However, there is an opportunity for the country to grow more robust and shock-responsive, and to establish pre-positioned funding mechanisms to enhance future crisis response efforts. For the Comoros, adaptation and climate-resilient development are the key climate change focus areas, with the country projected to face 836 million dollars 2050 in additional costs due to climate-related impacts. Current plans to adapt to the impacts of climate change in the Comoros include efforts to improve water management, strengthen coastal protection, and develop climate-smart agriculture practices. Given the country’s reliance on its natural resource base for economic growth and mobility, protection of these resources from climate change will be essential for promoting resilient growth and development. In addition to growing the adaptive capacity of the country’s natural resource sectors, strategic economic diversification will be important to help minimize future climate impacts, and development activities will need to be undertaken in such a way as to attract low-carbon co-benefits. The Union of the Comoros is committed to addressing climate change through its Nationally Determined Contribution (NDC) and national priorities. The country’s NDC (which was revised in 2021 for a ten-year horizon) sets ambitious targets, with a goal of reducing greenhouse gas emissions by 23 percent by 2030. The country also plans to significantly increase the share of renewable energy in its energy portfolio, reaching 33 MW by 2030. This will not only promote low-carbon development but also reduce the country’s dependency on imported oil and coal, which currently make up 95 percent of the energy mix. Additionally, the Comoros has declared its intention to increase CO2 removals by 47 percent by 2030, compared to BAU.