Thailand’s economy grows lowest in ASEAN: warning sign or opportunity for change?

The World Bank’s downward revision of Thailand’s 2025 economic growth forecast to just 1.6% is a worrying figure and the lowest among all ASEAN countries. This slowdown in growth not only reflects the current situation but also signals a warning sign of the structural vulnerabilities that Thailand is facing.

The pressures hidden beneath the numbers
The Thai economy still relies heavily on exports and tourism, which are sectors that are vulnerable to global economic uncertainties. In addition, the delay in adapting to the digital economy, high household debt levels, and structural reforms that have not kept up with the changes are all factors that are holding back the country’s competitiveness.

Compared to neighboring countries such as Vietnam, which is seriously pushing for reform, or Malaysia, which is making progress in adopting new technologies, Thailand seems to be a slower player in the field.

Approaches to recovery and adaptation
In the short term, targeted economic stimulus measures are essential, such as:

• Reducing the tax burden for small and medium-sized enterprises (SMEs)
• Increasing access to low-interest funding sources
• Supporting digital adaptation
• Systematic resolution of household debt issues
• Strategic infrastructure investment that can connect the Thai economy to the global value chain

At the same time, Thailand should look far into the medium and long-term potential enhancement, especially in key areas such as:

• Developing the education system and labor skills to be in line with the modern world
• Promoting research and innovation that can compete regionally and globally
• Improving regulations to facilitate investment
• Diversifying risks from traditional markets to potential new markets

Data source : Bangkok Business