Thailand’s economy grew 3.2% year-on-year in the fourth quarter of 2024, according to official data released on Monday. This growth was below the expected 3.9% increase, as forecasted by analysts in a Reuters poll. On a quarterly basis, the economy expanded by just 0.4% in the October-December period, missing the anticipated 0.7% growth.
For the full year of 2024, Thailand’s economy grew 2.5%, an improvement from the revised 2.0% growth in 2023. The National Economic and Social Development Council (NESDC) expects growth to range from 2.3% to 3.3% in 2025, maintaining the midpoint forecast of 2.8%. This growth is expected to be supported by government spending, private consumption, investment, tourism, and exports.
Commerce Minister Pichai Naripthaphan expressed hopes that Thailand would avoid facing U.S. tariffs and would take necessary actions to prevent its trade surplus with the U.S. from negatively affecting exports.
In December, the Bank of Thailand kept its key interest rate at 2.25%, following an unexpected quarter-point reduction in October. Bank of Thailand Governor Sethaput Suthiwartnarueput indicated that the current policy rate remains appropriate due to high household debt, despite growth potentially falling below the 2.9% target for the year. The next policy review is set for February 26.
