Thailand’s economic growth is projected to moderate to 2.1% in 2025 before slowing further to 1.6% in 2026, the International Monetary Fund (IMF) said, citing mounting economic headwinds and constrained policy space.
Reuters reported that IMF noted that the current economic conditions suggest room for additional monetary easing if needed.
“Rising economic challenges amid limited policy space call for careful calibration of the policy mix to maximise effectiveness,” the fund said.
In a recent move, the Bank of Thailand unexpectedly left its one-day repurchase rate unchanged at 1.5% in October, after cutting rates by a total of 100 basis points across four reductions since October 2024. The central bank’s next policy review is scheduled for Dec 17, a closely watched event amid concerns over slowing growth and rising economic pressures.
Analysts say that Thailand’s economy faces a delicate balancing act: supporting growth while managing inflation and maintaining policy flexibility in an increasingly challenging global environment.
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