Thailand to Implement Economic Stimulus Package Amid Revised GDP Forecast
Finance Ministry to inject over 500 billion baht to boost GDP growth, citing impact of US tariffs and global economic developments
The Finance Ministry has announced plans to implement an economic stimulus package worth over 500 billion baht in response to the revised GDP growth forecast for Thailand.
The International Monetary Fund (IMF) has downwardly revised Thailand's 2025 GDP growth forecast from 2.9% to 1.8%, citing the impact of US reciprocal tariffs.
This revision makes Thailand the only ASEAN country with a GDP projection below 2%.
For 2026, the IMF anticipates a further decline to 1.6%.
Finance Minister Pichai Chunhavajira views the IMF forecast as preliminary and believes that the government's stimulus measures can help sustain growth at prior levels.
The stimulus package will focus on domestic initiatives, including stimulating consumption and investment, as well as providing soft loans.
The source of funding is currently under review, with options being considered by key agencies such as the National Economic and Social Development Council (NESDC) and the Bank of Thailand.
If implemented, the 500-billion-baht package would increase the public debt-to-GDP ratio by approximately 3%, from its current level of 64.21% to around 67.21%.
Details of the proposed projects are expected to be announced next month, pending further global economic developments.
The International Monetary Fund (IMF) has downwardly revised Thailand's 2025 GDP growth forecast from 2.9% to 1.8%, citing the impact of US reciprocal tariffs.
This revision makes Thailand the only ASEAN country with a GDP projection below 2%.
For 2026, the IMF anticipates a further decline to 1.6%.
Finance Minister Pichai Chunhavajira views the IMF forecast as preliminary and believes that the government's stimulus measures can help sustain growth at prior levels.
The stimulus package will focus on domestic initiatives, including stimulating consumption and investment, as well as providing soft loans.
The source of funding is currently under review, with options being considered by key agencies such as the National Economic and Social Development Council (NESDC) and the Bank of Thailand.
If implemented, the 500-billion-baht package would increase the public debt-to-GDP ratio by approximately 3%, from its current level of 64.21% to around 67.21%.
Details of the proposed projects are expected to be announced next month, pending further global economic developments.
