# World Bank forecasts Thai economy to grow by 2.9% in 2025

- Link: https://www.thailand-business-news.com/economics/194748-world-bank-forecasts-thai-economy-to-grow-by-2-9-in-2025
- Published: 2025-02-17T08:11:00+07:00
- Author: Boris Sullivan

The World Bank has revised its economic growth forecast for Thailand, projecting
a 2.9% expansion in 2025, an increase from the 2.6% growth anticipated for 2024.

This positive outlook is mainly due to recovering investment, tourism sector recovery,
and private consumption. The tourism sector is expected to return to pre-pandemic
levels by mid-2025.

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## Key Points

 * The World Bank has revised Thailand’s economic growth forecast to 2.9% in 2025,
   an improvement driven by recovering investment, tourism sector recovery, and 
   private consumption.
 * The report emphasizes the potential of small and medium-sized enterprises (SMEs)
   as significant growth drivers, but highlights challenges such as access to funding,
   technology, and international markets.
 * Key challenges for Thailand’s economic recovery include reducing high household
   debt levels, stimulating private investment, and ensuring fiscal sustainability,
   with the World Bank suggesting a cautiously accommodative monetary policy stance.

The report highlights the importance of innovation, entrepreneurship, and small 
and medium-sized enterprises (SMEs) in strengthening economic resilience and fostering
sustainable growth. Despite the economic recovery, Thailand’s GDP remains below 
its potential level, with key challenges including high household debt levels, stimulating
private investment, and ensuring fiscal sustainability.

SMEs, representing over 90% of businesses in Thailand, have the potential to drive
significant economic growth but encounter challenges in securing funding, adopting
technology, and entering international markets. To overcome these hurdles, it is
crucial for policymakers, financial institutions, and private sector stakeholders
to collaborate in creating accessible financing options, promoting digital transformation
initiatives, and providing support for export activities. By addressing these barriers,
SMEs can enhance their competitiveness, contribute to job creation, and play a pivotal
role in strengthening Thailand’s economy on a global scale.

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**The World Bank forecasts tourist arrivals to reach 41 million in 2025,** surpassing
the pre-pandemic record. While private consumption will benefit from economic stimulus
measures, household deleveraging and tighter bank lending conditions are expected
to moderate consumption growth. Export growth is projected to slow due to reduced
demand from key trading partners. The World Bank noted that global trade policy 
uncertainties pose significant risks.

The report suggests that Thailand’s monetary policy stance will remain cautiously
accommodative this year, with targeted household debt relief and maintaining financial
stability being crucial. The report further highlights the importance of balancing
economic recovery with inflationary pressures, emphasizing that the central bank
may adopt measured adjustments if necessary. Additionally, fostering sustainable
growth through investment in key sectors and promoting financial inclusion are expected
to remain priorities throughout the year.