Economy

The MPC cut Thailand’s policy rate by 0.25% to 1.75% due to economic slowdown risks from U.S. trade policies and lower tourism. Economic growth projections are weakened under two scenarios, emphasizing the need for accommodative monetary policy amidst global trade tensions.

In March 2025, Thai merchandise exports surged 17.8% YOY to USD 29.5 billion, driven by strong electronics and gold sales. Despite growth, negative impacts from US tariffs loom ahead, with potential export contractions of 0.4% predicted for 2025.

The Mega Earthquake on March 28 has affected Thailand’s tourism sector, resulting in canceled hotel bookings and decreased advance bookings for the Songkran festival. Foreign tourist numbers are projected to decline, with potential revenue losses. Restoring confidence and implementing stimulus measures are crucial for recovery.