Thailand’s Economic Performance in Q4 2024 and Outlook for 2025

In the fourth quarter of 2024, Thailand’s economy demonstrated resilience and growth, achieving a year-on-year expansion of 3.2%, up from 3.0% in the previous quarter. On a seasonally adjusted basis, the economy grew by 0.4% compared to the third quarter. 

Thailand’s Economic Overview in 2024 and Outlook for 2025

Key Economic Indicators:

• Gross Domestic Product (GDP): The nominal GDP for 2024 was $526.3 billion, with a per capita GDP of $7,496. 

• Inflation Rate: Maintained at a low 1.0%, indicating stable price levels. 

• Unemployment Rate: Slightly decreased to 0.88% from 1.02% in the previous quarter, reflecting a stable labor market. 

Expenditure Overview:

• Private Consumption: Increased by 3.4%, consistent with the 3.3% growth observed in the prior quarter. This growth was supported by government economic stimulus measures and rising consumer confidence. 

• Government Consumption: Grew by 5.4%, slightly down from a 6.1% growth in the previous quarter. This increase was driven by higher compensation of employees and expenditure on goods and services. 

• Investment: Total investment rose by 5.1%, continuing from a 5.0% increase in the preceding quarter. Public investment surged by 39.4%, while private investment declined by 2.1%, primarily due to reduced spending on machinery and equipment. 

Trade Performance:

• Exports: The export value reached $76.7 billion, marking a robust growth of 10.6%—the highest rate in 11 quarters. This surge was driven by significant expansions in manufacturing and agricultural products. 

• Imports: Total imports were valued at $70.1 billion, resulting in a trade surplus of $6.6 billion. 

Tourism Sector:

The tourism industry continued its strong recovery, welcoming 9.46 million international tourists in Q4 2024. China remained the leading source of tourists, accounting for 26.27% of arrivals, followed by Malaysia (9.37%) and India (6.73%). 

Economic Outlook for 2025:

The National Economic and Social Development Council (NESDC) projects that Thailand’s GDP will grow between 2.3% and 3.3% in 2025. This optimistic outlook is based on anticipated improvements in exports, private consumption, and the continued recovery of the tourism sector. However, challenges such as high household debt and global economic uncertainties persist. 

In summary, Thailand’s economic performance in the fourth quarter of 2024 reflects a resilient and adaptive economy. Strategic focus on strengthening key sectors, managing potential risks, and implementing supportive policies will be crucial to ensure sustained growth in 2025.

Sources:

• Department of International Economic Affairs, Ministry of Foreign Affairs
• Ministry of Tourism & Sport
• The National Economic and Social Development Council
• Trade Policy and Strategy Office, Ministry of Commerce