# Thailand’s economy grew by 3.2% in Q4 2024, missing expectations

- Link: https://www.thailand-business-news.com/economics/194864-thailands-economy-grew-by-3-2-in-q4-2024-missing-expectations
- Published: 2025-02-17T14:23:09+07:00
- Author: Boris Sullivan

Thailand’s economy grew by 3.2% in the fourth quarter of 2024, missing the forecasted
growth of 3.9%. This growth rate, although lower than expected, is still the strongest
annual rate in nine quarters.

Key Points

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 * Thailand’s economy grew by 3.2% in the fourth quarter of 2024, missing the forecasted
   growth of 3.9%, but still representing the strongest annual rate in nine quarters.
 * The Thai economy faces potential risks from U.S. tariffs on its exports, which
   could impact its economic growth in 2025.
 * The Thai government aims to stimulate the economy with measures targeting industries
   like automotive and real estate, and is optimistic about achieving 3.5% growth
   in 2024, despite concerns about high household debt and sluggish demand from 
   China.

The slow growth is attributed to high household debt, borrowing costs, and sluggish
demand from China. The full-year growth was 2.5%, faster than the 2.0% growth in
2023. The growth forecast for 2025 remains unchanged at a range of 2.3% to 3.3%.

The Thai economy faces potential risks from U.S. tariffs on Thai exports, as highlighted
by the National Economic and Social Development Council (NESDC) head, Danucha Pichayanan.
Despite the lower-than-expected growth, Danucha stated that there is no immediate
need to cut interest rates. The Bank of Thailand left its main interest rate at 
2.25% in December following a surprise quarter-point cut in October. The next policy
review is scheduled for February 26.

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Danucha emphasized the importance of monitoring global economic trends, particularly
the impact of geopolitical tensions and trade policies, which could further strain
Thailand’s export-driven economy. He also noted that domestic consumption and tourism
remain critical pillars for sustaining growth, urging policymakers to focus on strengthening
these sectors. Meanwhile, analysts suggest that the Bank of Thailand might adopt
a wait-and-see approach in the upcoming policy review, balancing the need to support
growth while ensuring financial stability.