Thailand's Q3 GDP Growth Slows to 1.2% Amid Weak Private Consumption and Political Uncertainty

Thailand’s economy grew at a slower pace in the third quarter of 2025, , according to official data released in November. . The contraction in key economic sectors, particularly private consumption and tourism, contributed to the disappointing performance.

On a quarterly basis, , . . The decline reflects broader weakening across critical sectors, including exports, manufacturing, construction, and government expenditures, all of which contributed to the subdued economic activity.

Private consumption, a major driver of Thailand’s economy, saw a notable contraction, hampered by high household debt levels and domestic political instability. The government has acknowledged the challenge, . .

Exports, however, remained a bright spot, showing strong growth during the quarter. Despite these gains, external pressures such as U.S. tariffs and a difficult global export environment have continued to weigh on the manufacturing and trade sectors. These factors, combined with the ongoing tourism downturn and a strong baht, have further constrained economic momentum.

In response to the slowing economy, , . For 2026, . These projections reflect the uncertainty around the global economic environment and the need for continued domestic policy support.

The government has a limited timeframe to implement its stimulus measures, with plans to dissolve parliament by the end of January and hold a general election in late March. The upcoming political transition adds another layer of complexity to economic planning, as policy continuity and public confidence remain key concerns.

With Thailand’s economy facing a combination of internal and external challenges, the path to recovery will depend on the effectiveness of fiscal and monetary interventions, as well as the ability to stabilize private sector confidence and tourism. The central bank has also indicated a focus on addressing household debt, a long-standing structural issue that has constrained spending and investment.

The data underscores the vulnerability of Thailand’s economy to global and domestic shocks, particularly in a period of rapid political turnover and economic uncertainty. Continued monitoring of private consumption trends and export performance will be critical in assessing the trajectory of the recovery.