Thailand's Gross Domestic Product (GDP) experienced a year-on-year growth of 3.1% in the first quarter of 2025, showing a slight deceleration from the upwardly revised 3.3% expansion observed in the fourth quarter of 2024, which marked the highest annual increase since the third quarter of 2022. Despite this slowdown, the latest figures surpassed the predicted growth rate of 2.9%.
Private consumption increased at a reduced rate of 2.6% compared to 3.4% in the previous quarter, as households exhibited greater caution in their spending due to prevailing economic uncertainties. Additionally, both fixed investment (which grew by 4.7% compared to 5.1% previously) and government expenditure (up by 3.4% compared to the previous 5.4%) experienced their slowest growth in three quarters.
On the trade side, export growth accelerated to 12.3%, outpacing the rise in imports, which increased by 2.1%, compared to 8.2% in the previous quarter, thus providing a positive contribution to the GDP.
Earlier this month, the Finance Ministry adjusted its growth forecast for 2025 down to 2.1% from the previous 3%, attributing this change to the repercussions of US-imposed tariffs and a global economic deceleration. Last year, the economy expanded by 2.5%, following a 2.0% growth in 2023, both slightly below the official target of 2.7%.
