IMF Staff Country Reports

The 2024 Article IV Consultation discusses that Thailand’s economy is gradually recovering, but at a slower pace than peers. Growth is projected to accelerate moderately, reaching 2.7 percent in 2024 and 2.9 percent in 2025, supported by the rebound of tourism-related activities and fiscal stimulus. A well-coordinated near-term policy mix and structural reforms would help firmly entrench the recovery and boost potential growth and inclusiveness over the longer term. A further reduction in the policy rate would support the ongoing recovery, while translating into improvements in borrowers’ debt-servicing capacity with little risk of additional leverage amid tightened lending. Resolute reforms to boost productivity and competitiveness are necessary to reverse the downward trend in potential growth. Providing an adequate social protection floor to vulnerable households could help enhance their resilience to shocks and address structural drivers of household debt accumulation.