# Thailand’s Economy Ends 2025 Stronger Than Expected, Boosting New Government

- Link: https://www.thailand-business-news.com/economics/287445-thailands-economy-ends-2025-stronger-than-expected-boosting-new-government
- Published: 2026-02-17T10:16:42+07:00
- Author: Bui Dung

Thailand’s economy closed 2025 on a surprisingly strong note, with **GDP expanding
2.5% year-on-year in Q4**, well above forecasts of 1.3% and outpacing the previous
quarter’s 1.2%. On a quarterly basis, growth reached **1.9%**, nearly triple the
expected pace.

## Key Takeaways

 * **Q4 2025 GDP:** Expanded **2.5% year-on-year**, stronger than forecasts and 
   above Q3’s 1.2%.
 * **Quarterly Growth:** Rose **1.9% from Q3**, exceeding the highest Bloomberg 
   survey estimate of 1.9%.
 * **Full-Year 2025:** Economy grew **2.4% overall**.
 * **2026 Outlook:** The National Economic and Social Development Council (NESDC)
   upgraded projections, expecting growth between **1.5%–2.5%**, driven by exports
   and tourism recovery.

For the full year, GDP rose **2.4%**, driven by a rebound in **exports**, a surge
in **tourism arrivals**, and targeted **government stimulus** measures. The National
Economic and Social Development Council (NESDC) has now set its **2026 growth outlook
at 1.5%–2.5%**, citing continued recovery in external demand and tourism as key 
drivers.

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The stronger-than-expected performance comes at a pivotal moment for Prime Minister**
Anutin Charnvirakul**, who recently secured a coalition deal. The economic momentum
provides his administration with political capital as it pledges to stabilize the
economy and ease cost-of-living pressures.

Despite the upbeat figures, Thailand’s growth remains modest compared to regional
peers. Malaysia and Singapore grew at more than double Thailand’s pace in 2025, 
while Vietnam expanded nearly four times faster, underscoring the competitiveness
challenges ahead.

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