Thailand’s Q4 2025 Growth Seen at Just 0.3% Amid Weak Demand

Growth Seen at Just 0.3%

Thailand: Thailand’s economy is expected to grow at 0.3% in the fourth quarter of 2025 if no further government stimulus is introduced, as global trade tensions and a slow tourism recovery continue to weigh on growth. The Federation of Thai Industries (FTI) highlighted weakening domestic demand and declining production capacity in several industries, urging the government to boost local consumption through schemes such as the “Khon La Khrueng” co-payment programme and by prioritising Made in Thailand products. Business leaders called for stability, stronger policy continuity, and effective management of the baht’s volatility to sustain investor confidence. They also warned that the country’s potential sovereign credit rating downgrade could impact state enterprises and financial institutions, though private firms with strong fundamentals remain largely insulated.

Across sectors, concerns persist over household debt, slowing exports, and rising geopolitical risks. The Thai SME Confederation identified three key challenges for 2026: the debt trap restraining business investment, intensifying global rivalries affecting trade, and the urgent need to upskill the workforce to adapt to digital transformation and AI adoption. Industry leaders such as those from WHA Corporation, King Power, SC Asset, and Sena Development emphasised liquidity management, workforce reskilling, and stronger structural reforms as top priorities. They warned that weak purchasing power and limited policy implementation time could hinder recovery, while urging the government to focus on long-term competitiveness through technology integration, debt relief, and sustainable domestic growth measures.

Source: The Nation