Economic growth in Thailand is projected to rise to 2.9 per cent in 2025, up from 2.6 per cent in 2024, according to the latest Thailand Economic Monitor, released today.
Growth is mainly driven by a rebound in investment, supported by higher budget execution and implementation of pipeline infrastructure projects. Tourism and private consumption have also supported growth, with tourism projected to return to pre-pandemic levels by mid-2025. As Thailand navigates a shifting global economy, innovation, entrepreneurship and more dynamic small and medium-sized enterprises (SME) will be critical to building economic resilience and spurring growth.
“Thailand has made remarkable progress over the past five decades. Unlocking future growth needs bold action,” said Melinda Good, World Bank Country Director for Thailand and Myanmar. “Investing in innovation ecosystems, skills for the future, and creating an enabling regulatory environment will enable Thais to adapt to global challenges and thrive in the future.”
Underpinned by the ongoing economic recovery and the government’s 10,000-baht cash transfer program, the poverty rate declined to 8.2 per cent in 2024, down from 8.5 per cent in 2023.
Although the recovery outpaced earlier projections, Thailand’s GDP remains below its potential level. Challenges include the need to reduce high household debt, revitalise private investment, and ensure fiscal sustainability amid rising spending needs caused by climate risks and population ageing.
“Thailand has an opportunity to strengthen its fiscal resilience by improving revenue mobilisation and ensuring spending is well targeted. Expanding the tax base and prioritising pro-growth investments in infrastructure and new technology will be critical for long-term sustainability,” said Kiatipong Ariyapruchya, World Bank Senior Economist for Thailand.
Looking ahead the report suggests that small and medium seized enterprises hold significant promise to become a stronger driver of future growth. However, SMEs and start-ups — which account for over 90 per cent of businesses in Thailand and employ much of the workforce — face significant barriers to accessing finance, technology, and international markets.
Developing digital start-ups, which are critical to future competitiveness, is another area for improvement. Enhancing regulatory frameworks, especially for competition, trade and investment and expanding financial support are needed to support their growth.
Education and training programs on digital and entrepreneurial skills would help equip workers with the capabilities they need to drive innovation and business expansion. Strengthening Thailand’s participation in global value chains and leveraging regional integration would encourage foreign investment in high-tech industries.
“Innovation and entrepreneurship are no longer optional in today’s changing global economy”, said Cristian Quijada Torres, World Bank Senior Private Sector Specialist. “Empowering SMEs and startups with the right tools, financing, and skills will be key to unlocking Thailand’s potential for long-term, inclusive growth.”
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