Thailand’s GDP Rises 2.4% in 2025, 5th Year of Expansion

Thailand’s economy grew 2.4% in 2025, easing from 2.9% the previous year but extending its expansion streak to five consecutive years. Still trailing regional peers since the pandemic, growth has been constrained by persistent headwinds, including U.S. tariffs, elevated household debt, and a stronger baht. Exports, a crucial driver of Thailand's growth, are projected to rise 2.0% this year, a sharp turnaround from 0.3% drop estimated earlier. The Bhumjaithai Party, led by Prime Minister Anutin Charnvirakul, emerged with the most seats in the recent election and has begun coalition negotiations with minor parties. Bangkok expects the econony to grow in a range of 1.5% to 2.5% this year.

Thailand’s economy is expected to grow 2.4% this year, higher than a previous forecast of 2.2%, following a series of government stimulus measures and better-than-expected exports, the finance ministry said on Thursday. Exports, a key driver of Thai growth, are now projected to rise 10% this year, up from an earlier forecast of 5.5%, said Vinit Visessuvanapoom, head of the Finance Ministry’s Fiscal Policy Office, at a press conference, according to Reuters. Foreign tourist arrivals are expected to reach 33.5 million this year, down from a forecast of 34.5 million made in July. However, gross domestic product growth is expected to slow to 2.0% next year, with exports forecast to dip 1.5%. Meanwhile, tourist arrivals are projected to rebound to 35.5 million in 2026, though still below the pre-pandemic record of nearly 40 million visitors in 2019. Last year, Southeast Asia’s second-largest economy grew 2.5%, lagging its regional peers.

Thailand’s Constitutional Court on Tuesday suspended Prime Minister Paetongtarn Shinawatra from duty just 10 months into her term, pending a case seeking her dismissal. The court accepted a petition from 36 senators accusing her of dishonesty and violating ethical standards over the leak of a politically sensitive phone call with Cambodia’s former leader Hun Sen. Deputy Prime Minister Suriya Juangroongruangkit will serve as caretaker premier while the case is reviewed. Paetongtarn, who will remain in the cabinet as the new culture minister following a reshuffle, has 15 days to respond to the court. The leaked conversation sparked domestic backlash and further weakened her fragile coalition after a key party exited and is expected to call for a no-confidence vote. Meanwhile, protest groups are demanding her resignation, increasing pressure on a government already under political strain.