Thailand’s economy expanded at a faster pace than anticipated in the final quarter of last year, delivering a welcome boost to the country’s newly installed government as it seeks to consolidate recovery and reinforce investor confidence.

Official data released this week showed gross domestic product growth exceeding market expectations, supported by resilient tourism inflows, improved external demand and sustained public investment.

On a year-on-year basis, growth outpaced economists’ forecasts, reflecting renewed strength in services and manufacturing.

The revival of international tourism, particularly from key regional markets, contributed significantly to domestic consumption and employment, while export performance benefited from a gradual recovery in global trade conditions.

Government spending on infrastructure and targeted stimulus measures also underpinned economic activity, with authorities emphasizing fiscal discipline alongside growth-oriented initiatives.

Senior officials described the figures as evidence that policy coordination and strategic planning are helping to restore momentum after a period of uneven performance.

Quarter-on-quarter expansion likewise came in stronger than projected, indicating underlying resilience in household spending and private sector investment.

Analysts noted that inflationary pressures remain contained, giving policymakers additional flexibility as they balance growth objectives with financial stability.

The stronger-than-expected results arrive at a critical juncture for the new administration, which has pledged to prioritize economic revitalization, competitiveness and income generation.

Measures aimed at supporting small and medium-sized enterprises, expanding digital infrastructure and attracting foreign direct investment are central to the government’s forward agenda.

While external risks persist, including global interest-rate trends and geopolitical uncertainties, the latest data signal that Thailand’s recovery is gaining traction.

Market participants said sustained policy consistency and continued tourism growth will be key to maintaining momentum in the months ahead.