Call for more stimulus to revive flagging economy

With global and domestic headwinds pressuring the Thai economy this year, the new government should consider “focused domestic intervention” measures to enhance tourism and attract foreign investments in specific sectors, says the Thai unit of German insurer Allianz.

- NAREERAT WIRIYAPONG

Barring unanticipated domestic or international developments, the Thai economy will likely be weaker in 2026 than last year, said Thomas Wilson, country manager, president and chief executive of Allianz Ayudhya Assurance.

The International Monetary Fund, World Bank and Asian Development Bank issued 2025 Thai GDP growth forecasts of 2%, with a robust first half supported by pre-tariff exports, though tourism weakened in the second half.

This trend is expected to carry through, leading to a 2026 GDP growth forecast of 1.6-1.7%.

Many of the headwinds facing the Thai economy are external, including the US tariffs affecting exports, exacerbated by the rerouting of Chinese shipments as a result of US and EU barriers affecting Thai small businesses.