Business
IMF projects Thailand’s GDP growth to reach 1.6% in 2026
Thailand’s economy is expected to grow by 2.1% this year but slow to 1.6% by 2026 due to mounting economic challenges, according to the International Monetary Fund. Thailand’s economic growth is being influenced by a combination of global and domestic factors, including supply chain disruptions and a slowdown in key export markets. The tourism sector, a crucial driver of the Thai economy, is also facing uncertainties despite gradual recovery from the pandemic.
📊 IMF’s Thai GDP Forecast
- Thailand’s economy is projected to grow 2.1% in 2025, but slow to 1.6% in 2026.
- The slowdown is attributed to increasing economic headwinds and limited policy space.
💰 Monetary Policy Context
- The Bank of Thailand held its one-day repurchase rate steady at 1.50% in October 2025.
- Since October 2024, the central bank has cut rates four times, totaling 100 basis points.
Economic conditions indicate potential for additional monetary easing, the statement dated November 13 noted, following a staff visit to Southeast Asia’s second-largest economy.
📊 Comparison of Thailand’s 2026 GDP Forecasts
| Institution | 2025 Forecast | 2026 Forecast | Key Drivers/Notes |
|---|---|---|---|
| IMF | 2.1% | 1.6% | Warns of mounting headwinds, limited policy space, household debt. Suggests careful calibration of monetary/fiscal mix. |
| World Bank | 2.0% | 1.7% | Downgraded from earlier 2.7% forecast. Cites weaker exports, slump in tourism (esp. Chinese arrivals), subdued domestic demand. |
| ADB (Asian Development Bank) | 2.0–2.8% | 1.6–2.9% | Two reports differ: Sept 2025 ADO puts 2026 at 1.6%, while April 2025 revision raised it to 2.9%. Tourism and infrastructure investment seen as main drivers. |
For Thailand, the baseline expectation is weak growth around 1.6–1.7% in 2026, unless tourism rebounds strongly and infrastructure projects accelerate (ADB’s optimistic scenario). Policymakers will need to balance stimulus vs. debt sustainability while addressing structural issues like household debt and competitiveness. Policymakers must also focus on fostering innovation, improving education systems, and enhancing workforce skills to ensure long-term economic resilience. Strengthening regional trade partnerships and diversifying export markets could further support sustainable growth. Additionally, addressing environmental challenges and promoting green energy initiatives will be crucial for maintaining Thailand’s competitiveness in a rapidly changing global economy.
