IMF sees Thai GDP growth at 2.7% this year, 2.9% in 2025

THAILAND’S economic growth is projected at 2.7 per cent this year and 2.9 per cent next year, reflecting planned fiscal stimulus measures and a pickup in public investment, the International Monetary Fund (IMF) said.

Private consumption growth is expected to remain robust, boosted by government stimulus, while private investment is also projected to increase, the Washington-based IMF said in a Nov 26 statement after a staff visit to South-east Asia’s second-largest economy.

The mission welcomes the Bank of Thailand’s (BOT) decision to cut the policy interest rate by 25 basis points in October, the IMF said, adding a further reduction would support the recovery.

“Given remaining high uncertainty and two-sided risks to inflation, the mission advises the authorities to stand ready to adjust their monetary policy stance in a data and outlook-dependent manner, with the flexible exchange rate continuing to act as a shock absorber,” the IMF said.

The BOT will next review monetary policy on Dec 18. The central bank described its surprise rate cut last month as a policy recalibration.

Thailand’s economy grew 3 per cent in the third quarter, the fastest growth in two years, and the state planning agency predicts growth of 2.6 per cent this year, picking up from last year’s 1.9 per cent that lagged peers. REUTERS