Paopoom says it’s too soon for World Bank to cut Thailand’s growth forecast

Deputy Finance Minister Paopoom Rojanasakul responds to World Bank’s revised 2025 GDP forecast, asserting it’s too early to make such a cut amid ongoing negotiations.

Deputy Finance Minister Paopoom Rojanasakul said on Wednesday that it was too early for the World Bank to lower its growth forecast for Thailand’s GDP, noting that the kingdom is still in negotiations with the US and that the government’s stimulus measures will soon be implemented.

Paopoom’s remarks came in response to the World Bank's forecast, which predicted Thailand’s GDP growth in 2025 would be 1.8%, down from the previous 2.9% forecast, citing economic conditions amid global uncertainties.

Paopoom explained that the factors influencing Thailand’s economic outcome are still variable, making it difficult for the World Bank to accurately forecast the country’s GDP at this time.“I believe no one can make an accurate GDP forecast now, as the input factors are still changing, so the output remains unclear,” Paopoom said.

However, he emphasised that the Thai government would take the World Bank's opinion into account and would do its best to prevent a downward revision of the GDP forecast.

While the World Bank made its forecast based on current figures, Paopoom pointed out that the Thai government is negotiating with the US to avoid trade barriers and that he believes the talks will yield positive results.

In the meantime, a subcommittee of the Economic Stimulus Project Policy Committee (ESPPC) is reviewing proposals for stimulus budgets.Paopoom revealed that over 10,000 stimulus projects had been proposed, with a total budget value of 400 billion baht. The subcommittee will screen projects for implementation with an initial 157 billion baht budget.

He stated that the subcommittee would make final decisions soon and send the projects to the ESPPC, which is chaired by Prime Minister Paetongtarn Shinawatra, for approval within one to two weeks.

“The final amount to be allocated for economic stimulus cannot be disclosed yet, as we need to spend this amount judiciously, as it is crucial for the economy. The projects must be reviewed with patience and prudence to ensure the maximum benefit for the country,” Paopoom added.

“I hereby affirm that the government is still stimulating the economy continuously and adjusting policies based on the changing situation to maintain both short-term and long-term economic stability.”

(2025/06/11-00:00)