Economic growth in Thailand is expected to increase to 2.9 percent in 2025, rising from 2.6 percent in 2024, as stated in the latest Thailand Economic Monitor released today. The growth is largely attributed to a rebound in investment, supported by improved budget execution and the implementation of infrastructure projects. Tourism and private consumption have also contributed positively, with tourism anticipated to reach pre-pandemic levels by mid-2025.
"Innovation, entrepreneurship and more dynamic small and medium-sized enterprises (SME) will be critical to building economic resilience and spurring growth," highlights the report as Thailand adapts to a changing global economy.
Melinda Good, World Bank Country Director for Thailand and Myanmar, remarked on the country's progress over the past five decades: “Unlocking future growth needs bold action.” She emphasized investing in innovation ecosystems, future skills development, and creating a supportive regulatory environment as essential for adapting to global challenges.
The poverty rate decreased to 8.2 percent in 2024 from 8.5 percent in 2023, aided by ongoing economic recovery and the government’s cash transfer program.
Despite surpassing earlier recovery projections, Thailand's GDP remains below its potential level due to challenges such as high household debt reduction needs, revitalizing private investment, and ensuring fiscal sustainability amid increasing spending demands caused by climate risks and an aging population.
Kiatipong Ariyapruchya, World Bank Senior Economist for Thailand stated: “Thailand has an opportunity to strengthen its fiscal resilience by improving revenue mobilization and ensuring spending is well targeted." He suggested expanding the tax base and prioritizing pro-growth investments as crucial for long-term sustainability.
The report indicates that SMEs hold significant promise for driving future growth but face barriers like accessing finance, technology, and international markets. Developing digital start-ups is seen as critical for competitiveness improvement. Regulatory framework enhancements for competition, trade, investment expansion along with financial support are needed for their growth.
Education programs focusing on digital skills would equip workers with necessary capabilities for innovation and business expansion. Strengthening participation in global value chains could attract foreign investment into high-tech industries.
Cristian Quijada Torres of the World Bank emphasized: "Innovation and entrepreneurship are no longer optional in today’s changing global economy.” He noted that empowering SMEs with tools, financing, and skills is key to unlocking Thailand’s potential for inclusive long-term growth.