The Thai economy faces a major challenge in fiscal stability, which is no longer as strong as in the past, said outgoing Bank of Thailand (BoT) Governor Sethaput Suthiwartnarueput. His term ends on September 30, and he will be succeeded by Vitai Ratanakorn, former president and CEO of the Government Savings Bank. During his final "Meet the Press," Sethaput noted that Thailand’s economy has slowed continuously, taking longer to recover after crises.

Thailand’s large informal economy—comprising unregistered businesses, self-employed workers, and cash-based transactions outside government oversight—accounts for nearly 48% of GDP and is at the center of a growing set of structural economic risks, the Thai Bankers’ Association (TBA) warned yesterday. High income inequality, household debt exceeding 100% of GDP across both formal and informal sectors, baht volatility influenced by gold and cryptocurrency trading, declining competitiveness, and regulatory challenges further threaten the country’s economic stability.

BANGKOK (Reuters) - Thailand’s economic growth will be hit by U.S. tariffs on its exports, although the impact on activity won’t be as great as during the COVID-19 pandemic, a senior central bank official said on Thursday. The U.S. tariffs have halted some production and delayed investment decisions, and their effect on Thailand’s exports will be seen in the second half of the year, Bank of Thailand Assistant Governor Sakkapop Panyanukul told a briefing. "Global trade policy uncertainty is a large and prolonged shock that will affect Thailand in many ways", he said. Thailand is among Southeast Asian nations hardest hit by U.S. President Donald Trump’s proposed measures, facing a 36% tariff if a reduction can’t be negotiated before a global moratorium expires in July. The economy is now likely to grow less than 2.5% this year, below a previous forecast, in part because higher U.S. imports to reduce Thailand’s trade surplus with America will affect local manufacturing, Sakkapop said. "GDP will definitely decrease," he said, but added that how much was still uncertain. "The impact will not be small but it will not be as severe as during COVID," he said. Because of a strong start to 2025, full-year export growth may not be too badly affected overall, Sakkapop said. Inflation is likely to fall, driven by supply-side factors, but there is no pressure on monetary policy, he said. In February, the central bank cut the key interest rate by 25 basis points to 2.00%, a move it said was a response to a weaker growth outlook and increased risks posed by global trade policy uncertainty. Its next rate meeting is on April 30, when it is due to give updated economic forecasts. Which stock should you buy in your very next trade? AI computing powers are changing the stock market. Investing.com's ProPicks AI includes 6 winning stock portfolios chosen by our advanced AI. In 2024 alone, ProPicks AI identified 2 stocks that surged over 150%, 4 additional stocks that leaped over 30%, and 3 more that climbed over 25%. Which stock will be the next to soar?

The Tourism Authority of Thailand (TAT) has proposed a 2026 tourism revenue target of 2.8 trillion baht, up 5% from 2025. The goal includes 36 million international visitors (up 7%), generating 1.63 trillion baht (up 8%), and 214 million domestic trips (up 5%), contributing 1.17 trillion baht (up 3%). The Ministry will meet with the TAT board to review economic conditions and finalize the figures before submitting them to the Cabinet for policy approval. For 2025, TAT initially aimed for 39 million foreign tourists—a target now seen as ambitious. Midyear projections suggest 35 million is more realistic, though there’s still time to reach the original goal.

A recent survey of Thai industrial executives has highlighted concerns over outdated laws and bureaucratic inefficiency as major factors holding back Thailand’s economic growth. The 46th FTI CEO Poll, conducted in September 2025, found that 91.2% of respondents identified complex and obsolete regulations, along with insufficient bureaucratic reform, as key weaknesses limiting GDP expansion. Executives also cited delays in implementing major infrastructure projects (51.3%) and reliance on traditional, low-value industries (46.9%) as additional constraints.

Thailand’s economy in July 2025 remained supported by exports, which expanded for the 13th consecutive month, helping boost consumption in durable goods, according to the Ministry of Finance’s Fiscal Policy Office. Private investment and international tourism, however, showed signs of slowing compared with June. Analysts say second-half export trends and industrial production will need close monitoring, particularly after U.S. Reciprocal Tariffs took effect in August 2025, which could impact the economy.

BANGKOK (Reuters) -Thai Prime Minister Paetongtarn Shinawatra will on Wednesday propose a 3.78 trillion baht ($115.5 billion) budget to parliament for the 2026 fiscal year, as her government seeks to support a sluggish economy facing steep U.S. tariffs. The draft budget bill, which will be debated in the house over the next four days, projects a 0.7% rise in spending, and a 0.7% drop in the budget deficit to 860 billion baht, or 4.3% of gross domestic product, from the 2025 fiscal year that ends in September. "A deficit budget policy is aimed at maintaining economic stability, including supporting a recovery and promoting growth at an appropriate level," the bill said. The budget plan projects growth at 2.3% to 3.3% for both 2025 and 2026, with inflation predicted at 0.5% to 1.5%. The economy expanded 2.5% last year, lagging regional peers. The plan did not take into account the potential impact of U.S. tariffs. Thailand faces a 36% U.S. tariff if a reduction cannot be negotiated before a moratorium expires in July. The United States, Thailand’s biggest export market, has set a 10% baseline tariff for most countries while the moratorium is in place. Parliament will deliberate on the bill in the remainder of this week before it is put to a vote on Saturday, which will require support from the majority of lawmakers present. The budget is expected to pass, but comes amid tensions in the Pheu Thai Party-led coalition, particularly with its biggest partner, the Bhumjaithai Party. Disagreements have surfaced over the government’s casino bill, which aims to legalise casinos within integrated complexes to boost tourism. Rifts over constitutional reform and policy on the use and sale of cannabis, which was decriminalised in 2022 but is now facing tighter restrictions, have also strained the alliance. If the budget does not pass, Paetongtarn, who came to power last year, could either step down and make way for a new premier elected by parliament, or dissolve the lower house and call a new general election. Southeast Asia’s second-largest economy expanded an annual 3.1% in the first quarter, but the state planning agency last week slashed its full-year growth forecast range by a percentage point to 1.3% to 2.3% because of the U.S. tariffs. ($1 = 32.740 baht)

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Thailand’s economy softened in the third quarter of 2025 but showed early signs of recovery towards the end of the quarter, led by a surge in exports, a rebound in manufacturing, and rising foreign tourism receipts, according to the Bank of Thailand (BoT). Domestic demand remained moderate, with private consumption and investment growing slowly, while structural challenges continued to weigh on medium-term growth.

BANGKOK (Reuters) -Thailand’s monetary policy should remain accommodative to support the economy and an easing would not significantly increase financial stability risks, the minutes of the Bank of Thailand’s August 13 policy meeting showed on Wednesday. At the meeting, the monetary policy committee voted unanimously to cut the one-day repurchase rate by 25 basis points to a near three-year low of 1.50%. "Going forward, the Committee viewed that monetary policy should remain accommodative to support the economy," the minutes said. "At the same time, it was important to ensure macro-financial stability, while taking into account the limited policy space." The August cut was the fourth reduction in 10 months to support a sluggish economy grappling with U.S. tariffs and softer tourism. At the review, the central bank said Southeast Asia’s second-largest economy was still expected to grow close to its forecasts of 2.3% for 2025 and 1.7% for next year. Last year’s growth of 2.5% lagged behind regional peers. "Looking ahead, the economy was expected to moderate relative to the first half of the year, reflecting the impact of U.S. trade policies," the minutes said. The next policy review is on October 8, and some economists expect a further rate cut. 3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads. Successful investors know to check multiple angles before making their move. InvestingPro's three powerful features work together to give you that edge: ProPicks AI runs 80+ stock-picking strategies, including Tech Titans, which doubled the S&P 500's performance in just 18 months! Fair Value combines 17 proven valuation models to help you spot overpriced stocks and undervalued gems. And WarrenAI delivers instant insights on any stock. Ask questions, get vetted answers backed by real-time data (unlike ChatGPT). Our subscribers use all three to identify stocks before double-digit gains and avoid costly mistakes. But with 50% during our Summer Sale, even if you only use one of these features the value pays for itself. Sale ends soon—don't wait until prices go back up.

Thailand’s Industrial Confidence Index rose to 87.8 in September 2025, up from 86.4 in August, marking the first increase in seven months, according to the Federation of Thai Industries (FTI). The improvement reflects renewed business optimism following the swift formation of the new government, which has helped stabilize economic policies and support investment. FTI Vice Chairman Apichit Prasoprat and Vice Chairman Peekthong Thongyai, who also chairs the FTI’s Economic and Academic Committee, said the index gained from measures that strengthened private sector confidence, including policy continuity and effective rollout of economic stimulus programs.

In phone call, Paetongtarn Shinawatra discusses border dispute with former Cambodian leader and calls him ‘uncle’

BANGKOK (Reuters) -Thailand’s central bank cut its key interest rate by a quarter point for a second consecutive meeting on Wednesday, in a move to support an underperforming economy facing uncertainty over steep U.S. tariffs. The Bank of Thailand’s monetary policy committee voted 5-2 to reduce the one-day repurchase rate by 25 basis points to 1.75%, the lowest level in two years. That followed a similar reduction at the previous meeting in February. Twenty of 28 economists in a Reuters poll had predicted the key rate would be cut this week. The other eight had expected no policy change. The BOT on Wednesday cut its growth forecast for 2025 to 2.0%, down from just above 2.5% seen in February and 2.9% predicted in December. It said there were downside risks to growth and U.S. trade tariffs could weigh in the second half of the year. The central bank said it was ready to adjust interest rates as appropriate, and would closely monitor the baht currency. The baht was unchanged after the rate decision.

The Federation of Thai Industries (FTI) has projected that Thailand’s GDP and exports could face notable impacts from U.S. tariffs and global trade challenges. FTI outlined three potential scenarios: Scenario 1 (unable to remain competitive): GDP could decline by -0.77%, exports to the U.S. could fall by -15.4%, total exports down -2.6%, and global market share could drop by -0.9%.

The Finance Ministry has raised its 2025 GDP growth forecast to 2.4% from 2.2%. Fiscal Policy Office Director-General Winit Wisetsuwannaphum said the revision reflects government year-end stimulus measures expected to boost domestic consumption in Q4 2025, alongside continued strong export performance. Private consumption is projected to grow 3.0% (range 2.5%–3.5%), supported by programs such as “Khon La Khrueng Plus.” Export value in U.S.

BANGKOK (Reuters) -Thailand’s economy is expected to grow by between 2.0% and 2.2% this year, down from a previous forecast of 2.4% to 2.9% growth due to the impact of U.S. tariffs, a leading joint business group said on Wednesday. Exports, a key driver of Thailand’s economy, could rise by 0.3% to 0.9% this year, lower than an earlier projection of 1.5% to 2.5% growth, the Joint Standing Committee on Commerce, Industry and Banking said. Thailand is among the Southeast Asian nations hardest hit by U.S. President Donald Trump’s measures, with a 36% tariff if a reduction cannot be negotiated before a moratorium expires in July. The business group was concerned that export rivals might negotiate better tariff terms and disadvantage Thai shipments to the United States, a key market, said Kriengkrai Theinnukul, chair of the Federation of Thai Industries, which is part of the group. The baht appreciation was also was a concern and could weigh on businesses, he said, adding the government should manage the currency so it does not appreciate too fast or become too volatile. Thailand’s finance ministry last week cut its forecast for economic growth this year to 2.1% from 3% due to the impact of U.S. tariffs and a global slowdown.

The Thai economy in August 2025 was supported by continued growth in merchandise exports and domestic tourism, while private consumption and international tourist arrivals showed signs of slowing. Policymakers are closely monitoring the effects of U.S. reciprocal tariffs, movements in the baht, government policies, and border-area conflicts, which could affect the economy in the near term. Pornchai Thirraveja, Director-General of the Fiscal Policy Office, highlighted that exports and domestic tourism remained key growth drivers, while private consumption and international travel softened.

The Federation of Thai Industries (FTI) reported that its Industrial Confidence Index fell to 86.6 in July 2025, down from 87.7 in June, citing the Thai–Cambodian border dispute as a major factor affecting trade and business activities. Total trade in June reached 10,907.53 million baht, down 32.3% from May and 23.3% from the same period last year. Floods in the northern region, especially in Nan and Chiang Rai, have continued to damage homes, communities, and industrial facilities.

By Orathai Sriring, Kitiphong Thaichareon and Thanadech Staporncharnchai BANGKOK (Reuters) -Thailand’s monetary policy is relatively accommodative and the central bank is ready to ease again, if needed, to support the economy through the global trade war, a deputy central bank governor told Reuters on Friday. Southeast Asia’s second-largest economy should have grown by about 2.5% in the first quarter year-on-year, Bank of Thailand Deputy Governor Piti Disyatat said in an interview. While that would be a slowdown from the annual 3.2% pace in the final quarter of 2024, Piti said the economy was not expected to have contracted on a quarter-on-quarter basis. First-quarter GDP data will be released on May 19. "We are positioned for the incoming storm, and we have limited policy space. We have to use that when it is most effective and needed," the deputy governor said. On Wednesday, the central bank cut its key interest rate by a quarter point for a second straight meeting, and lowered its growth forecast for 2025 to 2% on an assumption that U.S. tariffs stayed near the current rate of 10%. "The stance I would say is somewhat accommodative," he said of monetary policy, with the benchmark rate at a two-year low of 1.75%. "But because those challenges are quite uncertain, the policy going forward will be outlook dependent." The next meeting is on June 25. FISCAL SPACE Fiscal policy space is also limited, and planned government stimulus measures should be reassessed in the current context. "Fiscal space has to be used very carefully for what is really needed," Piti said. Thailand is among the Southeast Asian nations hardest hit by U.S. President Donald Trump’s measures, facing a 36% tariff if a reduction cannot be negotiated before a U.S. moratorium expires in July. Thailand will seek tariffs similar to those of trade competitors, Finance Minister Pichai Chunhavajira said on Thursday. The country’s trade negotiations with Washington have been postponed as the United States has asked Bangkok to review important issues. Given the U.S. concerns about the management of the currencies of its trading partners, Piti said Thailand’s exchange rate framework should not be seen as an issue. "Our management of the baht has been to lower volatility, not a level," he said. "It’s actually appreciated a little bit". Piti expected second-quarter growth to be stable, with the impact of tariffs to be seen in the second half of the year.In its review of forecasts, the Bank of Thailand said growth could slow to just 1.3% this year if the trade war escalated and U.S. tariffs are set at half the proposed rates. While headline inflation this year is expected to be below the target range of 1% to 3%, medium-term inflation expectations remain anchored within the target, he said. Core inflation is seen stable this year and is not reflecting weak domestic demand or deflation, he added. The baht’s exchange rate reflected economic fundamentals, he said, adding the bank would ensure it does not become too volatile.

Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas has announced plans for a tourism stimulus package to be proposed to the Cabinet next week, aimed at reviving domestic travel and supporting economic growth amid a slowdown in the sector. Domestic tourism has declined by 8% over the first eight months of 2025, prompting urgent measures. The package includes three main components:

Thai Government faces crucial question as delayed launch of its Digital Money Program sparks debate over potential impact on the economy - Will it boost or hinder progress?

Thailand’s industrial confidence continued its downward trend in August 2025, marking the sixth consecutive monthly decline. The Industrial Confidence Index (ICI) fell to 86.4 from 86.6 in July, dropping steadily from 93.4 in February, as entrepreneurs expressed growing concerns over political uncertainty, investment delays, and trade challenges. The Federation of Thai Industries (FTI) cited lingering uncertainty following the Constitutional Court’s ruling that ended the Prime Minister’s tenure and slower-than-expected disbursement of the government’s investment budget during the first 11 months of fiscal year 2025.