Bangkok: The National Economic and Social Development Board (NESDB) has reported a 3.1% growth in the GDP for the first quarter of 2025, with a downward revision for the entire year to 1.8%. The announcement highlights the necessity for vigilance towards economic fluctuations and advises the public to manage their expenditures prudently.
According to Thai News Agency, Mr. Danucha Pichayanan, Secretary-General of the NESDB, explained that the economy's growth in the first quarter followed a 3.3% expansion in the last quarter of 2024. This growth was primarily driven by a surge in the agricultural sector, despite a deceleration in private sector production. The quarter also saw a high export growth rate of 12.3%. However, domestic consumption, imports, and initial capital formation experienced a slowdown.
The NESDB has adjusted its GDP growth forecast for 2025 to a range of 1.3-2.3%, with a midpoint of 1.8%, down from a previous estimate of 2.3-3.3%. This adjustment is attributed to global trade pressures, including the impact of US import tax policies, high levels of debt, and a projected slowdown in the latter half of 2025. The global economic and trade deceleration, alongside agricultural sector volatility, are identified as significant risk factors.
Positive influences on the Thai economy include increased government expenditure, domestic consumption growth, and a recovery in tourism and related services. Mr. Danucha noted that the strong Q1 figures were influenced by importers preemptively importing goods due to US tariffs. He advised entrepreneurs to brace for potential trade volatility and encouraged the public to exercise caution in their spending. The government is preparing measures to address these challenges, with a meeting scheduled to discuss economic stimulus strategies.
Regarding the digital currency phase 3, outcomes from the meeting held this morning are awaited for further insights.