Thailand: 2025 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Thailand

The 2025 Article IV Consultation discusses that Thailand’s economic growth is estimated to have slowed from 2.5 percent in 2024 to 2.1 percent in 2025, as increasing external and domestic headwinds—including trade policy uncertainty, constrained credit growth, and a slower rebound in foreign tourist arrivals—continued to weigh on activity. A carefully calibrated policy mix—comprising targeted fiscal support anchored on a credible medium-term consolidation strategy, additional monetary loosening, and financial policies to facilitate orderly household debt deleveraging and to address the impaired credit channel—would help support the recovery. In order to reverse the trend of slowing growth, structural reforms should be accelerated to boost productivity and competitiveness, which would also support external rebalancing. The deteriorating external environment underscores the increasing need to improve productivity and competitiveness. Priorities include deepening trade and financial integration, facilitating structural transformation and improving investment efficiency, and advancing export sophistication—alongside efforts to enhance social protection, governance, and climate resilience.