# Thailand’s GDP falls short of expectations, expanding by only 1.2% in Q3

- Link: https://www.thailand-business-news.com/economics/258550-thailands-gdp-falls-short-of-expectations-expanding-by-only-1-2-in-q3
- Published: 2025-11-18T11:21:00+07:00
- Author: Chloe Zhou

Thailand’s economy grew only 1.2% year-over-year in Q3 2025, significantly missing
the 1.6% forecast and slowing from 2.8% in the previous quarter. The country experienced
its first quarterly GDP contraction (-0.6%) since late 2022, with all major economic
sectors—exports, manufacturing, construction, government spending, and tourism—showing
weakness.

## Key Points

 * Thailand’s Q3 2025 GDP growth of **1.2%** missed expectations and marked a slowdown
   from the previous quarter’s **2.8%**.
 * The economy experienced its **first quarterly contraction (-0.6%)** since late
   2022, with all major sectors—**exports, manufacturing, construction, government
   spending, and tourism**—showing weakness.
 * Key challenges include **US tariffs, a tougher export environment, political 
   instability**, and a **decline in tourism**.

The slowdown is attributed to US tariffs, challenging export conditions, political
instability, and reduced tourism, prompting Prime Minister Anutin Charnvirakul to
launch a 44-billion-baht stimulus program while the new central bank chief addresses
high household debt.

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### What caused Thailand’s GDP to miss growth estimates?

Thailand’s GDP missed growth estimates due to several factors, including softer 
factory output, a decline in foreign tourist arrivals, and a challenging export 
environment. These issues were compounded by the impact of US tariffs and political
instability following the fall of the previous government. Additionally, key economic
sectors such as manufacturing, construction, and tourism experienced slowdowns, 
contributing to the overall economic deceleration.

### How will the 44-billion-baht stimulus program help the economy?

The 44-billion-baht stimulus program is designed to drive domestic consumption and
accelerate economic recovery by encouraging increased household spending. This initiative
seeks to mitigate the effects of declining exports, weakened tourism, and reduced
manufacturing activity, while also addressing the pressing issue of high household
debt. By bolstering demand, the program aims to stabilize economic growth and provide
support to critical sectors currently facing challenges. Alongside this effort, 
the central bank is implementing measures to stabilize financial markets and ease
debt burdens, ensuring a comprehensive approach to revitalizing the economy.