Thailand’s economy lagging behind that of other ASEAN nations
Asian Development Bank’s report puts the country’s GDP growth in 2024 at just 2.6 per cent, considerably lower than for the region as a whole
Although the ASEAN economy is predicted to grow slightly more than expected in 2025, Thailand is still lagging behind other nations in the region, according to the Asian Development Bank (ADB).
Citing its report titled “Asian Development Outlook”, ADB estimated that the region’s economy would record overall growth of 4.7 per cent throughout 2024, better than the previous prediction, conducted in September 2024, of 4.5 per cent.
The bank cited the growth of exports in the manufacturing sector and government spending on large-scale economic investment projects of the ASEAN nations as reasons behind the region’s improved economic forecast.
However, Thailand is expected to see just 2.6-per cent growth in its Gross Domestic Product (GDP) in the whole of 2024, ADB said.
The Thai economy was driven in the first nine months of 2024 by the expansion in government spending, and the tourism and manufacturing sectors, but growth is predicted to be lower than certain other countries, it said.
The Philippines is predicted to enjoy a 6-per cent growth in its GDP throughout 2024, due to household consumption and major investments that benefit the economy, ADB said.
Malaysia and Vietnam will experience growth of 5 per cent and 6.4 per cent in their GDP in 2024 respectively, the report notes, adding that these two countries have made significant progress over the years.
ADB also predicted that Thailand’s GDP will increase by 2.7 per cent in 2025.
The prediction, however, is still lower than those in other nations. Vietnam is forecast to grow by 6.6 per cent followed by the Philippines (6.2%) and Malaysia (4.6%).
ADB attributes Vietnam’s growth to the recovery of exports and economic stimulus measures, the improvement of the US economy, and an increase in government spending.
However, ASEAN economies continue to face challenges from geopolitical tensions, polarised global trade and extreme weather changes, affecting long-term growth, ADB concluded.
