Talks needed to avert trade war amid global risks

Discussions at the World Economic Forum this year were dominated by risks that pose a threat to global economic growth. “State-induced conflict” was identified as the top concern by participants, followed by “disinformation” and “misinformation’, and “environmental concerns” such as extreme weather, loss of biodiversity and ecosystem collapse.

- RONYOOT CHITRADON

Needless to say, the world is entering an era of heightened economic tension and unimaginable fragmentation, resulting in more complex and uncertainties in global trade.

According to the World Bank’s estimates, the Thai economy is expected to grow by 2.9% this year — thanks to domestic factors that include the recovery of the tourism sector. About 40 million people are expected to visit the kingdom this year, up from 35.3 million in 2024.

However, exports — another major source of revenue — are expected to slightly drop this year, due to lower demand from major markets, such as China and the United States.

As such, the country has some work to do if it wants to be more competitive in the world stage and reach this year's economic growth target.

The World Bank’s recommendations are listed down in report, Thailand Economic Monitor 2025, which focuses on ways to unlock the growth potential of small- and medium-sized enterprises (SMEs) and startups — key drivers of the Thai economy.