Thailand’s economic stability in question as World Bank slashes 2025 GDP forecast to 1.6%

World Bank cuts Thai growth forecast

In a separate report, the World Bank slashed Thailand’s 2025 GDP growth forecast from 2.9% (January estimate) to just 1.6%, marking a 1.3 percentage point drop—the lowest growth forecast among major ASEAN economies (excluding Singapore, Brunei, and conflict-affected Myanmar). For 2026, the forecast was also revised down from 2.7% to 1.8%.

The regional outlook for East Asia and the Pacific was similarly downgraded to 4.0% from 4.6%, due to:

• Rising global economic policy uncertainty, especially around trade;
• Increasing trade restrictions, particularly tariffs; and
• Slowing global economic growth.

Thailand and Malaysia are especially vulnerable to shifts in U.S. demand, while Cambodia and Vietnam face similar risks. Although Thailand implemented consumption-stimulus measures in late 2024, long-term challenges—including high household debt and global uncertainty—are expected to weigh down private consumption.

Private investment in Thailand is also declining due to tight credit conditions and efforts to control private sector debt. In contrast, Malaysia has seen rising foreign direct investment (FDI) in ICT and manufacturing, particularly in data centers. Public investment is helping offset weak private sector investment in countries like China, Indonesia, and the Philippines.

_{Images are for reference only.Images and contents gathered automatic from google or 3rd party sources.All rights on the images and contents are with their legal original owners.}