World Bank projects 2.9% growth for Thai economy in 2025

Kiatipong Ariyapruchya, senior economist at the World Bank Thailand, stressed the importance of strengthening fiscal resilience through improved revenue collection efficiency and targeted budget spending. 

“Expanding the tax base and prioritising growth-enhancing investments in infrastructure and new technologies will be crucial for long-term sustainability”, he noted.

The World Bank forecasts tourist arrivals to reach 41 million in 2025, surpassing the pre-pandemic record of nearly 40 million visitors in 2019. 

While private consumption will benefit from economic stimulus measures, including cash handouts, household deleveraging and tighter bank lending conditions are expected to moderate consumption growth.

Export growth is projected to slow due to reduced demand from key trading partners, including the United States and China. The World Bank noted that global trade policy uncertainties pose significant risks, given Thailand’s open economy and integration into the global value chains.

The report suggests that Thailand’s monetary policy stance will remain cautiously accommodative this year. 

“While a cautiously accommodative monetary stance is appropriate to support economic recovery, targeted household debt relief whilst minimising credit tightening and maintaining financial stability remains crucial,” the World Bank concluded.

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