World Bank downgrades Thai growth

The World Bank has reduced Thailand's economic growth forecast to 1.8% for this year and 1.7% for 2026, citing mounting global and domestic challenges.

- SOMRUEDI BANCHONGDUANG

These projections mark a downgrade from the forecast of 2.9% growth this year and 2.7% in 2026 made in February. Thailand recorded GDP growth of 2.5% last year.

The slowdown is attributed to weaker exports and a slump in tourism, especially from Chinese arrivals, as well as subdued domestic demand, including sluggish private investment and softening household consumption.

"The GDP growth outlook for both this year and next is relatively low, but remains aligned with projections from the National Economic and Social Development Council and the Bank of Thailand," said Kiatipong Ariyapruchya, senior economist for World Bank Thailand, during a seminar on Thailand's digital future hosted by the bank yesterday.