FX.co ★ IMF Forecasts Thailand’s 2026 GDP Growth at 1.6%

Thailand's economic growth is projected to reach 2.1% this year, with a forecasted slowdown to 1.6% by 2026 due to mounting economic challenges, according to the International Monetary Fund (IMF). In a statement following a recent staff visit to Thailand, Southeast Asia’s second-largest economy, the IMF suggested that current economic conditions present an opportunity for further monetary easing. The statement emphasized the importance of carefully balancing the policy mix to enhance effectiveness in light of rising economic hurdles and limited policy options. In October, the Bank of Thailand unexpectedly maintained its one-day repurchase rate at 1.50%, after having previously reduced the rate by a total of 100 basis points through four separate cuts since October 2024. Meanwhile, a Reuters survey indicated the country's GDP growth is expected to decelerate to 1.6% on a year-on-year basis in the third quarter, down from 2.8% in the second quarter. The official GDP figures for the third quarter are set to be released on November 17. Last year's economic growth was recorded at 2.5%, trailing behind other nations in the region.