Financial News: Thai GDP Growth Accelerates On Domestic Demand

Thai GDP Growth Accelerates On Domestic Demand

(RTTNews) - Thailand's economic growth accelerated more than expected in the fourth quarter on strong domestic demand, official data revealed Monday.

The annual growth in gross domestic product more than doubled to 2.5 percent in the fourth quarter from 1.2 percent in third quarter, the National Economic and Social Development Council, or NESDC, reported. Economists had forecast the rate to ease to 1.0 percent.

On a quarterly basis, GDP rebounded 1.9 percent, reversing the third quarter's 0.3 percent contraction.

The expenditure-side of GDP showed that private consumption grew 3.3 percent due to higher spending on semi-durable goods and services. At the same time, government spending rebounded 1.3 percent on higher compensation of employees and increased purchases of goods and services.

Gross fixed capital formation rose at a faster pace of 8.1 percent as both public and private investment reported strong growth.

Growth in exports softened to 5.6 percent from 7.6 percent. Meanwhile, growth in imports accelerated to 9.1 percent from 5.9 percent.

In 2025, the economy expanded 2.4 percent but weaker than the 2.9 percent growth seen in 2024.

The government forecast the economy to grow in the range of 1.5 percent to 2.5 percent this year, underpinned by domestic demand, fiscal spending and gradual recovery in tourism.

Last week, the World Bank lowered its growth outlook for Thailand to 1.6 percent from 1.7 percent for 2026. For 2027, growth is projected to rise to 2.2 percent on improving global conditions and private investment.

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