Thailand’s Economy Expands 2.4 Percent in 2025 as Domestic Demand Strengthens
Fifth consecutive year of growth sees pickup in final quarter, with private consumption and public investment offsetting export slowdown
Thailand’s economy expanded by 2.4 percent in 2025 compared with the previous year, official figures released on Monday showed, marking a fifth consecutive year of growth despite a moderation from 2024’s 2.9 percent expansion.
Data from the National Economic and Social Development Council indicated that growth accelerated in the final quarter of 2025 to 2.5 percent year on year, up from 1.2 percent in the preceding quarter.
The stronger finish was driven by a surge in private consumption, higher public investment and increased government spending, even as merchandise exports showed signs of slowing.
According to the council’s secretary-general, Danucha Pichayanan, the full-year performance exceeded earlier expectations.
Continued support from merchandise exports, alongside a recovery in private investment and a marked acceleration in public-sector investment, underpinned the overall outcome.
Exports remain a key pillar of Thailand’s economic structure, while domestic demand has played a growing stabilizing role amid shifting global conditions.
The improved fourth-quarter momentum suggests that fiscal stimulus measures and capital expenditure programs have begun to feed more directly into economic activity.
Analysts note that resilient household spending and targeted infrastructure outlays have helped buffer external headwinds.
Looking ahead, the council projects economic growth in 2026 to range between 1.5 percent and 2.5 percent, revising upward its earlier forecast band of 1.2 percent to 2.2 percent.
The outlook is supported by continued expansion in private consumption and investment, an increased national budget for both current and capital expenditures, and a gradual recovery in tourism.
Favourable water conditions are also expected to bolster agricultural output, providing additional support to rural incomes and domestic demand.
While global trade uncertainties remain a factor, policymakers expressed confidence that balanced domestic drivers and sustained public investment will help maintain economic momentum in the year ahead.
Data from the National Economic and Social Development Council indicated that growth accelerated in the final quarter of 2025 to 2.5 percent year on year, up from 1.2 percent in the preceding quarter.
The stronger finish was driven by a surge in private consumption, higher public investment and increased government spending, even as merchandise exports showed signs of slowing.
According to the council’s secretary-general, Danucha Pichayanan, the full-year performance exceeded earlier expectations.
Continued support from merchandise exports, alongside a recovery in private investment and a marked acceleration in public-sector investment, underpinned the overall outcome.
Exports remain a key pillar of Thailand’s economic structure, while domestic demand has played a growing stabilizing role amid shifting global conditions.
The improved fourth-quarter momentum suggests that fiscal stimulus measures and capital expenditure programs have begun to feed more directly into economic activity.
Analysts note that resilient household spending and targeted infrastructure outlays have helped buffer external headwinds.
Looking ahead, the council projects economic growth in 2026 to range between 1.5 percent and 2.5 percent, revising upward its earlier forecast band of 1.2 percent to 2.2 percent.
The outlook is supported by continued expansion in private consumption and investment, an increased national budget for both current and capital expenditures, and a gradual recovery in tourism.
Favourable water conditions are also expected to bolster agricultural output, providing additional support to rural incomes and domestic demand.
While global trade uncertainties remain a factor, policymakers expressed confidence that balanced domestic drivers and sustained public investment will help maintain economic momentum in the year ahead.
