Thailand is poised for economic growth, with the government projecting the Gross Domestic Product (GDP) to increase by 3% by 2025, driven by initiatives aimed at boosting foreign investment and addressing pressing issues like household debt.
On February 19, 2025, Prime Minister Phaetongthan Shinawatra addressed the audience during the "Matichon Leadership Forum 2025: Trust Thailand" event. She underscored the nation’s potential for economic recovery, highlighting the importance of strategic investments and infrastructure projects to stimulate the economy. According to the Prime Minister, the GDP has shown positive trends recently, with growth accelerating from 2% to 2.5% over the last year. "Thailand has the potential to attract foreign investment and should focus on sustainable and inclusive economic growth," Shinawatra stated, reinforcing her administration's commitment to promoting economic resilience.
Integral to this growth projection is the need to revitalize domestic consumption and foreign tourism, with the latter hitting record highs. The Prime Minister noted, "The number of international tourists visiting Thailand reached historic levels, bolstered by policies such as visa exemptions which simplify travel and encourage safety and confidence." This influx of tourists not only aids the hospitality sector but also supports myriad related industries across the economy.
Notably, the round of discussions held with the European Union-ASEAN Business Council (EU-ABC) and the European Association for Business and Commerce (EABC) featured insights from prominent European business leaders who expressed unwavering confidence in Thailand’s economic stability. H.E. Mr. David Daly, the EU Ambassador to Thailand, remarked, "The European Union is a reliable partner for Thailand, and we have strong trade and investment cooperation."
Echoing this sentiment, Mr. Noel Clehane, Vice Chair of EU-ABC, highlighted Thailand's strategic importance. He stated, "Thailand is strategically important for European businesses and offers great opportunities for collaboration," emphasizing mutual benefits available through future partnerships and trade agreements. The EU remains Thailand’s fourth-largest trading partner, with investments exceeding 43 billion euros, creating jobs for over 160,000 people and highlighting the need for continued bilateral engagements.
Despite the optimistic outlook and these partnerships, challenges loom large. Analysts point to Thailand's heavy reliance on exports, constituting 65% of its economy, as a growing risk amid global uncertainties such as trade wars and geopolitical tensions. Mr. Chaiyan Chakkarakul, CEO of Lalin Property, cautioned, "The real challenge for the Thai economy this year is to maintain competitiveness amid global uncertainty," which includes significant household debt levels and the economic impact of slowing activity from trading partners, particularly China.
To mitigate economic sluggishness, initiatives aimed at providing liquidity and loans for households and SMEs are underway. The government’s program “Khun Soo Ra Chai” or “You Fight, We Help” aims to alleviate debts affecting over 830,000 accounts, enabling individuals to regain access to financial resources. Shinawatra emphasized her administration's focus on creating pathways for citizens to escape the debt trap and stimulate consumer spending.
Looking forward, infrastructure projects are seen as key to invigorate the economy and create jobs. The government intends to accelerate spending on public utilities and large-scale constructions to generate job growth and boost economic activities. With examples such as the high-speed rail project connecting Thailand, Laos, and China, officials believe these enhancements will improve logistics, reduce costs, and increase income levels for citizens.
The Prime Minister ended on a hopeful note, urging collaboration among various sectors to develop sustainable economic strategies. "With united efforts from all sectors, we will see our economy flourish and improve the living standards of our citizens," she asserted, highlighting the importance of joint action for future growth.
Thailand stands at a crossroads where the potential for economic revival hinges not only on domestic policies but also on international partnerships and investments. With proactive measures and renewed commitments, the nation hopes to reshape its economic narrative post-pandemic.