thailandedition
Q4 Stimulus Boosted Growth, But New Economic Engines Needed

Q4 Stimulus Boosted Growth, But New Economic Engines Needed

Khaosod•Economy•11h ago

Reader Briefing

Thailand's GDP grew by 2.4% in 2025, exceeding forecasts due to Q4 stimulus, but long-term structural reforms are crucial to sustain growth and competitiveness.

  • •Thailand's GDP grew at 2.4% for the full year 2025, surpassing earlier projections.
  • •Q4 2025 GDP growth of 2.5% was significantly boosted by government spending and private investment.
  • •The government's stimulus measures in Q4 are credited with preventing a sharper economic downturn.
  • •Despite recent recovery, Thailand lags behind regional peers and requires fundamental structural reforms to achieve sustainable, high-potential growth.

Overview

  • •Q4 2025 saw GDP grow by 2.5% year-on-year, exceeding the previous quarter's 1.2% and initial expectations.
  • •The GDP for the full year 2025 reached 2.4%, higher than the previously estimated 2.0-2.2%.
  • •Government investment surged by 13.3% due to accelerated budget disbursement after a delay, resulting in construction expanding by 11.2%.
  • •Private investment grew by 6.5%, driven by increased imports of machinery and equipment, and potential data center projects.
  • •Consumption increased by 3.3%, partly due to consumers accelerating EV purchases before a policy deadline and government support for vulnerable groups.
  • •The government's Q4 stimulus measures are credited with stabilizing the economy in the short term and maintaining confidence.
  • •Pipat Luengnaruemitchai stated that while Thailand may be out of 'intensive care,' it has not yet left the 'hospital' and requires rehabilitation.
  • •Economic growth is expected to slow down in upcoming quarters due to budget limitations, necessitating structural reforms for competitiveness and catching up with regional peers.

Full article content is available on the original source.

Read on Khaosod (Thai Version)

Source: Khaosod (Original)

View Original Article

Key Quotes

Pipat Luengnaruemitchai
"Stimulus came at the right time, but it's time for the economy to tackle difficult issues."
ยากระตุ้นมาถูกจังหวะ แต่ถึงเวลาที่เศรษฐกิจต้องทำเรื่องยากกันแล้ว
Pipat Luengnaruemitchai
"We're definitely not out of the hospital yet and need to find ways to rehabilitate to achieve full growth potential."
เรายังไม่ได้ออกจากโรงพยาบาลแน่ๆ และคงต้องหาทางทำกายภาพบำบัดให้กลับมาโตได้อย่างเต็มศักยภาพจริงๆ
Pipat Luengnaruemitchai
"We 'cannot continue like this' because the budget is limited."
“ทำท่านี้ไปเรื่อยๆ ไม่ได้” เพราะงบประมาณมีจำกัด
Pipat Luengnaruemitchai
"We need new engines, not just temporary injections, but major economic structural reforms."
เราต้องการเครื่องจักรใหม่ ที่ไม่ใช่แค่การอัดฉีดชั่วคราว แต่คือการปฏิรูปโครงสร้างเศรษฐกิจครั้งใหญ่

Key Entities

Person

Pipat Luengnaruemitchai(พิพัฒน์ เหลืองนฤมิตชัย)
Head Economist of the Kiatnakin Phatra Financial Group, providing analysis on Thailand's economic performance and outlook.

Organization

Kiatnakin Phatra Financial Group(กลุ่มธุรกิจการเงินเกียรตินาคินภัทร)
Financial group for which Pipat Luengnaruemitchai serves as Head Economist.
Office of the National Economic and Social Development Council(สภาพัฒน์)ℹ️
Government agency that announced Thailand's GDP figures.

Concept

AIℹ️
Artificial Intelligence, a technological trend impacting labor skills and economic competitiveness.
Semiconductorℹ️
A key component driving technological growth and economic performance in countries like Taiwan.
EVℹ️
Electric Vehicles, demand for which was boosted by expiring government incentives.

Policy

Khon La Khrueng(คนละครึ่ง)
A government co-payment subsidy scheme that helped support consumption.