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Bangkok, Thailand – Thailand's Ministry of Finance has revised its economic growth forecast for 2025 downwards to 2.1%, a significant reduction from the previously projected 3%. This adjustment, announced on Thursday, reflects growing concerns about the impact of escalating U.S. tariffs and a broader global economic slowdown on Southeast Asia's second-largest economy.

The Ministry cited several key factors contributing to this revised outlook. The ongoing trade tensions between the United States and other major economies, particularly China, are expected to disrupt global supply chains and dampen demand for Thai exports. Thailand's economy is heavily reliant on exports, making it particularly vulnerable to external shocks.

Furthermore, the ministry highlighted a general deceleration in global economic growth, with major economies like the United States and Europe facing challenges such as high inflation, rising interest rates, and geopolitical uncertainties. These factors are expected to negatively impact tourism, a vital sector for Thailand’s economy, as well as foreign investment.

Impact on Key Sectors:

• Exports: The Ministry anticipates a slowdown in export growth due to reduced global demand and trade barriers. Sectors like electronics, automotive, and agricultural products are expected to be particularly affected.
• Tourism: While tourism has shown signs of recovery, the global economic slowdown could dampen travel plans and reduce visitor numbers, impacting hotels, restaurants, and related businesses.
• Investment: Uncertainty surrounding the global economic outlook may discourage foreign investors from committing to new projects in Thailand.

Government Response & Mitigation Strategies:

The Thai government is reportedly considering various measures to mitigate the impact of these economic headwinds. These may include:

• Fiscal Stimulus: Targeted spending programs to boost domestic demand and support vulnerable industries.
• Trade Diversification: Efforts to explore new export markets and reduce reliance on traditional trading partners.
• Investment Promotion: Incentives to attract foreign direct investment in high-growth sectors.
• Structural Reforms: Long-term measures to improve the competitiveness of the Thai economy, such as investing in education, infrastructure, and technology.

Expert Analysis:

Economists suggest that Thailand needs to focus on boosting domestic consumption and attracting higher-value foreign investment to offset the impact of external factors. “Thailand’s resilience will depend on its ability to adapt to the changing global landscape and implement policies that foster sustainable and inclusive growth,” stated Dr. Anya Sharma, a leading economist at the University of Bangkok.

Looking Ahead: The Ministry of Finance will continue to monitor the global economic situation closely and adjust its forecasts as needed. While the revised growth outlook presents challenges, the Thai government remains committed to supporting the economy and ensuring stability during this period of uncertainty.