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World Bank slashes Thailand's 2025 growth outlook to 1.8 pct

Source: Xinhua

Editor: huaxia

2025-07-04 14:58:16

BANGKOK, July 4 (Xinhua) -- Thailand's economy is projected to grow 1.8 percent this year, down from the 2.9 percent forecast in February, amid rising global and local headwinds, the World Bank has said.

The slowdown reflected weaker exports and tourism as well as weak domestic demand, particularly subdued private investment and softening private consumption, the bank said in a report.

According to the bank's Thailand Economic Monitor, escalating global trade tensions and a slower-than-expected recovery in tourism could dampen export and service growth, respectively.

Domestic political uncertainties could cause delays in the 2026 fiscal budget and public infrastructure investment implementation, with spillovers in private investment and overall growth, the report said.

Private consumption is expected to moderate due to household debt deleveraging and lower earnings, although fiscal stimulus and targeted support measures would provide some relief, it said.

The Southeast Asian country's total inbound visitors are expected to reach 37.4 million this year, 94 percent of the pre-pandemic level in 2019, it said, noting that the figure is forecast to return to pre-COVID levels by the second quarter of 2026.