Thailand cuts growth forecast on tariff uncertainty
Thailand cut the forecast for tourists from 38 million to 37 million after a drop in the number of Chinese visitors in the first quarter. (EPA Images pic)
BANGKOK : Thailand has downgraded its 2025 economic forecast due to uncertainty over trade tariffs threatened by US President Donald Trump, senior officials said today.
The Southeast Asian country faces a 36% levy as part of sweeping global 'reciprocal' tariffs proposed by Washington unless a reduction can be agreed by July.
The office of national economic and social development council (NESDC) said today that the economy grew by 3.1% from January-March compared with a year earlier.
However, it lowered the growth forecast for the year to between 1.3% and 2.3%, down from 2.3% to 3.3%.
Danucha Pichayanan, secretary-general of the NESDC, blamed tariff uncertainty as well as a projected drop in tourist numbers in 2025 for the downgrade.
'The (trade) talks have not yet concluded and there are several countries waiting in line to discuss,' he told a news conference.
He said the economic situation in the second quarter was likely to be slow, with the private sector delaying investments until the results of the trade talks emerge.
Thailand also cut the forecast for tourists in 2025 to 37 million from 38 million after a drop in the number of Chinese tourists in the first quarter.
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