Thailand’s economy grew faster than expected in the second quarter of 2025, supported by stronger exports ahead of newly imposed U.S. tariffs. Gross domestic product expanded 2.8% year-on-year in the April–June period, surpassing projections and countering sluggish tourism and weak domestic activity.
Authorities noted that export growth and renewed private investment played key roles in supporting the economy. However, private and government consumption, public investment, and tourism-related services continued to slow, reflecting challenges at home.
The country faces pressure from a recently implemented 19% tariff on shipments to the United States, its largest export market, alongside faltering tourism and political uncertainty. To provide relief, the central bank has cut interest rates multiple times since late 2024 to support demand and financial stability.
Quarter-on-quarter growth reached 0.6%, also higher than expected. For the first half of 2025, overall expansion stood at 3%. The government now projects full-year growth in the range of 1.8% to 2.3%. Still, risks remain from global competition, currency strength, and weaker inbound travel, which may weigh on momentum in the coming months.
Thailand’s Economy Outperforms Forecasts as Exports Offset Domestic Weakness
