Thailand finance ministry cuts 2025 growth forecast to 2.1%
Thailand’s finance ministry cut its forecast for economic growth this year to 2.1% from 3%, saying on Thursday that the impact of U.S. tariffs and a global slowdown would weigh on Southeast Asia’s second-largest economy.Exports, a key driver of Thai growth, were seen rising 2.3% this year, down from an earlier forecast of 4.4%, Pornchai Thiraveja, head of the finance ministry’s fiscal policy office, told a press conference, News.az reports citing BBC.
The forecasts came a day after the Bank of Thailand cut rates at a second consecutive meeting and lowered its own forecasts for the economy this year.
The 2.1% growth forecast is based on Thailand negotiating a reduced U.S. tariff rate, the ministry said. Thailand could face a 36% tariff on its exports to the U.S. if negotiations are unsuccessful before a moratorium on the levies expires in July.
Pornchai said if the government accelerated its budget spending, it was possible growth could be up to 2.5% this year.
Earlier on Thursday, Finance Minister Pichai Chunhavajira said Thailand would seek tariffs similar to those of its trade competitors, and planned economic stimulus measures to support growth.
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