Thailand's Bold Move to Counter Economic Slowdown

In response to the International Monetary Fund (IMF) revising Thailand’s 2025 GDP growth forecast downward from 2.9% to 1.8%, the Thai government has announced a massive $15 billion economic stimulus plan. This adjustment by the IMF, attributed to the impact of US reciprocal tariffs, leaves Thailand as the only ASEAN country with a GDP projection below 2%, with a further decline to 1.6% anticipated for 2026.

Street vendors in the bustling streets of Bangkok and Chiang Mai continue to attract tourists with unique foods and traditional souvenirs, contributing to the vibrant atmosphere of these cities.

Government's Response to Economic Challenges

Deputy Prime Minister and Minister of Finance Pichai Chunhavajira views the IMF forecast as a preliminary assessment. While acknowledging the potential impacts of U.S. President Donald Trump’s tariff policies, he reassured that the government is ready to implement stimulus measures to mitigate the GDP slowdown.

Exploring Funding Options

The source of funding for the stimulus package is under review, with several options being considered. Consultations are ongoing with key agencies to ensure the strategic deployment of the THB500-billion stimulus package, aiming to stimulate domestic consumption and support structural economic reform.

Finance Ministry's Permanent Secretary Lavaron Sangsnit emphasized Thailand’s robust fiscal position and the importance of strategic investment in sustaining economic growth.