Thailand GDP growth projected at 2.1% to 2.3% amid AI investment

Economic forecasts for Thailand indicate steady growth driven by technological trends and exports. The Bank of Thailand estimates GDP growth of 2.3% this year, with inflation expected at approximately 2.2%. Key drivers include a projected export growth of 17-18% and private and foreign investment expansion of about 13%, bolstered by the influx of AI-related technology investments.

However, the Bank of Thailand highlighted significant structural challenges that have lowered the country’s potential GDP to approximately 2.7%. These issues include low long-term investment levels, declining productivity, an aging population, education system gaps, and high debt levels, with household debt reaching 86-87% of GDP.

Separately, the International Monetary Fund (IMF) has adjusted its GDP forecast for Thailand upward to 2.1% for this year. Silvana Tenreyro, Chief Economist at the IMF, noted that the regional economy remains resilient, with AI growth helping to offset pressures from being a net energy importer. The IMF expects inflation to sit at 2.1% this year before decreasing next year.