# Thailand: Protecting Progress, Driving Sustainable Change

- Link: https://www.thailand-business-news.com/economics/245367-thailand-protecting-progress-driving-sustainable-change
- Published: 2025-10-19T09:20:00+07:00
- Author: News Desk

**Thailand’s economy faces challenges with weak domestic demand and external risks,
but high-value sector investments offer growth potential. Coordinated policies and
FDI are crucial for long-term transformation.**

## Economic Overview

As of September 2025, Thailand finds itself at a critical point, contending with
immediate economic challenges while embracing structural changes. Though domestic
demand has weakened, investments in sectors like electric vehicles and data centers
are paving the way for more robust growth. The ASEAN+3 Macroeconomic Research Office(
AMRO) underscores that coordinated policy actions and leveraging foreign direct 
investment (FDI) are crucial for economic transformation.

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## Growth and Inflation Forecast

According to AMRO’s assessment, Thailand’s growth is expected to slow, with projections
of 2.2% for 2025 and 1.9% for 2026. This slowdown is attributed to decreasing exports
and continued private sector weakness. However, there is potential for improvement
through strategic investments in high-value sectors. Inflation remains low, forecasted
at 0.5% for 2025, influenced by supply-side factors.

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## Policy Considerations

AMRO recommends maintaining supportive macroeconomic policies in the short term 
to counter domestic demand weaknesses. Monetary policy should remain accommodative,
with room for further easing if required. Fiscal policies should target vulnerable
groups while fostering economic transformation through reforms in innovation and
infrastructure. Harnessing high-quality FDI is vital for enhancing Thailand’s competitiveness
and driving inclusive growth. AMRO expresses gratitude to the Thai authorities for
their cooperation during the consultation.

Source: [Thailand: Safeguarding Growth, Sustaining Transformation – ASEAN+3 Macroeconomic Research Office ](https://amro-asia.org/thailand-safeguarding-growth-sustaining-transformation)