Thai Economy Shows Early Strength But Faces Headwinds from US Trade Measures

State planning agency advises businesses and the public to be prudent with finances despite encouraging first-quarter GDP growth

 

Thailand's economy demonstrated initial resilience in the first quarter of 2025, expanding by a solid 3.1%, according to the National Economic and Social Development Council (NESDC).

 

This follows a 3.3% expansion in the final quarter of the previous year, suggesting continued momentum.

 

However, the NESDC is urging caution, warning businesses and the public to manage their finances carefully in anticipation of increasing economic volatility, particularly from impending US trade tariffs.

 

Seasonally adjusted figures revealed a more modest 0.7% growth in the first quarter compared to the preceding three months.
  

Despite this positive start to the year, NESDC Secretary-General Danucha Pichayanan highlighted that this performance largely reflects a period preceding the announcement of retaliatory tariffs by the United States in early April.

 

This announcement prompted a rush of imports by US businesses, temporarily boosting Thai exports and production.

 

Looking ahead, Danucha cautioned that the economic landscape is set to become more turbulent, with potential fluctuations in trade, investment, and exchange rates.

 

This increased uncertainty could lead to a slowdown in Thai economic growth in subsequent periods, necessitating careful preparation from both individuals and businesses.

  

The Thai government is expected to introduce measures to support affected industries and workers. In light of this, the NESDC is advising the private sector, industrial players, and businesses across the board to proactively prepare for the anticipated impact of trade volatility.

 

Simultaneously, the public is being urged to adopt a more cautious approach to daily spending to navigate the potentially challenging times ahead.

 

The government has indicated its intention to roll out various support initiatives.

 

"I would like to ask everyone, both in the business sector and the general public, to be vigilant in their lives and business dealings in the coming period, so that we can all weather this situation successfully," Danucha concluded.

(2025/05/19-00:00)