BANGKOK (Reuters): Thailand’s economy is expected to grow over 2% this year, Finance Minister Ekniti Nitithanprapas said on Monday.
Fourth quarter growth should exceed 0.6% annually, he said.
The statement came after records showed on Monday that Thailand’s economy grew at its slowest pace in four years in the third quarter, according to official data.
showed on Monday, weighed down by weaker tourism and manufacturing during a period of domestic political uncertainty and a border conflict.
Gross domestic product grew 1.2% in the July-September quarter from a year earlier, National Economic and Social Development Council data showed.
That was slower than the annual growth of 2.8% in the June quarter, and missed the median forecast of 1.6% growth in a Reuters poll.
On a quarterly basis, the economy contracted a seasonally adjusted 0.6% in the July-September quarter, weaker than the poll forecast of a 0.3% contraction, and following revised growth of 0.5% in the previous quarter.
South-East Asia’s second-largest economy has faced multiple headwinds this year, including US tariffs, high household debt, and a strong baht. Last year’s growth of 2.5% lagged behind peers.
The planning agency on Monday revised its 2025 economic growth forecast to 2.0% from a range of 1.8% to 2.3% seen earlier.
It also predicted growth of 1.2% to 2.2% for next year. In an effort to stimulate growth, the government has rolled out a series of stimulus measures, including a 44 billion baht (US$1.3 billion) consumer subsidy program, aimed at lifting economic growth above 2.2% this year.
Prime Minister Anutin Charnvirakul’s government has a limited window to implement its measures, with the premier planning to dissolve parliament by the end of January, with a general election likely to be held in late March.
(Reporting by Kitiphong Thaichareon, Orathai Sriring, Thanadech Staporncharnchai and Chayut Setboonsarng; Editing by Martin Petty) – Reuters