Thailand’s economy rebounds despite tourism decline, pandemic
Lagging regional peers since the pandemic, the Thai economy has faced multiple headwinds, including US tariffs, high household debt and a strengthening baht
Thailand’s economy grew faster than expected last quarter, prompting the government to raise its 2026 outlook and bolstering hopes for a gradual recovery despite lingering economic challenges.
Gross domestic product grew 2.5 per cent in the October-December quarter from a year earlier, boosted by stronger domestic demand and investment, the National Economic and Social Development Council (NESDC) said on Monday.
That outstripped annual growth of 1.2 per cent in the September quarter and beat a median forecast of 1.0 per cent growth.
Quarter-on-quarter, Southeast Asia’s second-largest economy expanded by a seasonally adjusted 1.9 per cent – the most in four years – rebounding from a 0.3 per cent contraction in the previous quarter and outpacing forecasts for 0.3 per cent growth.
The Thai stock market surged following the data, with the benchmark SET Index up over 1 per cent to reach its highest level since December 2024.
The NESDC raised its 2026 growth outlook to 1.5 per cent to 2.5 per cent, from an earlier projection of 1.2 per cent to 2.2 per cent growth. The Thai economy expanded 2.4 per cent in 2025.