The World Bank has lowered its forecast for Thailand’s economic growth in 2026 to 1.6%, citing weaker global trade, persistently high household debt and a slower-than-expected recovery in tourism. The revised outlook is down from its previous projection of 1.8%, with growth expected to improve to 2.2% in 2027.
Speaking on 11 February 2026, Melinda Good, the World Bank’s country director for Thailand and Myanmar, said the softer outlook reflects ongoing headwinds from the global trade slowdown, elevated household debt levels and moderating momentum in the tourism sector. She noted that economic growth is projected to pick up in 2027 as global conditions improve, private-sector investment strengthens and foreign direct investment (FDI) projects begin to translate into actual capital spending.
Manufacturing remains a central pillar of Thailand’s economy, contributing around 25% of GDP and employing 16% of the workforce, or approximately 6.2 million people. Environmentally friendly products account for nearly 10% of Thailand’s total export value and tend to be more technologically advanced than non-green exports.
“Advanced green manufacturing is one of Thailand’s industries of the future and a key driver of economic growth, resilience and quality job creation,” Good said.
The World Bank’s latest projection marks a downgrade from the 1.8% growth estimate released in July 2025. The bank noted that Thailand continues to face challenges in boosting growth amid intensifying global competition.
According to the latest Thailand Economic Monitor report, advanced green manufacturing offers a promising pathway to revitalise the economy. Expanding into higher-value, lower-carbon industries—such as electric vehicles, solar energy equipment and energy-efficient electrical appliances—could help raise productivity, generate employment and position Thailand to better adapt to evolving global demand trends.