Thailand’s Finance Minister Ekniti Nitithanprapas disclosed in a business forum on Friday that the country’s economic foundation remains solid due to robust financial and fiscal conditions, with government stimulus policies expected to bolster growth in the fourth quarter of 2025.
Both inflation and unemployment are below 1%, and public debt stands at 64% of GDP, comfortably under the legislated ceiling of 70%. He noted that banks maintain capital reserves well above regulatory requirements, while foreign reserves are currently three times the nation’s short-term external debt, expressing confidence in a fourth-quarter recovery.
Meanwhile, Thailand’s economic expansion slowed to 1.2% year-on-year in the third quarter, marking the weakest performance in four years. The nation has trailed regional peers since the pandemic and is in the midst of persistent challenges, including U.S. tariffs, elevated household debt, and a firm baht.
To stimulate growth, the government has introduced a 44 billion baht consumer subsidy program alongside other initiatives. Ekniti added that the government plans to unveil a new support package for small businesses next week and is considering measures to accelerate major investment projects, with the goal of boosting investments by 200 to 300 billion baht in 2026.
Separately, Commerce Minister Suphajee Suthumpun discussed efforts to strengthen trade competitiveness as Thai export growth is projected to moderate in 2026. She highlighted the strengthening baht, which has appreciated 5.6% against the U.S. dollar this year, making it Asia’s second-best-performing currency after Malaysia’s ringgit.
Suphajee noted ongoing trade discussions with the United States, focusing on gaining exemptions for certain products from U.S. tariffs.
The minister also cautioned exporters about Washington’s concerns over transshipment practices, where goods are routed through Thailand from a third country to bypass tariffs. She emphasized that, as global investor interest in Thailand rises, there is a need for greater use of local content.
