BANGKOK, Feb 17 — Thailand’s economy grew less than expected last year, official data showed Monday, while the outlook for 2025 is beset by fears about US President Donald Trump’s tough trade policy.
Gross domestic product expanded 2.5 per cent, the Office of the National Economic and Social Development Council (NESDC) said, short of the 2.7 per cent forecast as the manufacturing and agriculture sectors contracted.
The figures come after Prime Minister Paetongtarn Shinawatra’s government launched measures to boost growth including increasing the minimum wage and a “digital wallet” cash handout.
The slack performance means Thailand has had “one of the weakest recoveries in Asia” from the effects of Covid-19, with GDP just over four per cent above its pre-pandemic level, Shivaan Tandon of Capital Economics said in a note.
The final quarter saw a 3.2 year-on-year increase in GDP, below the 3.8 forecast in a Bloomberg News survey.
The crucial tourism provided crucial support, with visitor numbers topping 35 million, beating the government’s target.
However, manufacturing shrank 0.5 per cent over the year while the agriculture, forestry, and fishing sector contracted 1.0 per cent.
The NESDC said growth this year should come in at 2.3-3.3 per cent, supported by increased government spending, domestic consumption and tourism recovery.
But it urged the government to step up trade talks with Washington as Trump unveils new tariffs targeting countries that have trade surpluses with the United States.
“Thailand stands out as one of the countries in Asia most exposed to Trump’s plans to introduce reciprocal tariffs on its trading partners,” Tandon of Capital Economics said.
“So if those tariffs come through, Thailand’s goods exports would struggle.” — AFP
