Thailand’s economic growth is projected to reach 2.7% this year and 2.9% in 2025, driven by planned fiscal stimulus measures and an uptick in public investment, according to the International Monetary Fund (IMF).
The IMF noted that private consumption is expected to remain strong, supported by government initiatives, while private investment is also anticipated to rise. This assessment follows a staff visit to Southeast Asia’s second-largest economy, with the IMF issuing a statement on Tuesday.
The IMF welcomed the Bank of Thailand’s decision to cut the policy interest rate by 25 basis points in October, suggesting that an additional reduction would help support the recovery.
“Given the ongoing high uncertainty and the dual risks to inflation, we advise the authorities to be prepared to adjust their monetary policy stance based on data and outlook, while allowing the flexible exchange rate to function as a shock absorber,” the IMF stated.
The Bank of Thailand is scheduled to review its monetary policy on December 18. The central bank characterized its recent surprise rate cut as a recalibration of policy.
Thailand’s economy grew by 3.0% in the third quarter, marking the fastest growth rate in two years, while the state planning agency forecasts a growth rate of 2.6% for this year, an improvement from last year’s 1.9%, which lagged behind its peers.
