BANGKOK — Thailand’s economic expansion is projected to moderate significantly this year, with gross domestic product growth slowing to 1.8% in 2025 and further declining to 1.7% in 2026, the World Bank warned in its Thailand Economic Monitor: Digital Pathways to Growth report released today.
The economic slowdown stems from multiple headwinds including shifting global trade patterns, weakening export performance, subdued consumer spending, and a gradual recovery in the tourism sector. However, the report suggests that improved investment confidence could potentially lift GDP growth to 2.2% this year and 1.8% next year.
Economy Remains Resilient Despite Global Challenges
“Despite challenges in the global economy, Thailand’s economy stayed strong in early 2025, helped by early exports amid trade uncertainties,” said Kiatpong Ariyapracha, Senior Economist at the World Bank’s Thailand office. He emphasized that maintaining economic stability, enhancing public investments, and expanding trade partnerships will be crucial for Thailand to navigate evolving market conditions.
The World Bank report identifies digital transformation as a critical catalyst for sustaining growth, generating employment opportunities, and improving service delivery during this period of economic uncertainty.
Digital Economy Emerges as Growth Engine
Thailand’s digital economy has emerged as a significant contributor to national output, representing approximately 6% of GDP and ranking as the second-largest digital economy in Southeast Asia. The sector has demonstrated remarkable job creation potential, with financial services, digital payments, fintech, software development, and engineering experiencing the most rapid employment growth over the past decade.
The country has achieved near-universal mobile internet penetration, supported by robust digital infrastructure. Government initiatives such as ThaID and PromptPay have successfully expanded financial inclusion, enhanced government service delivery, and fueled e-commerce growth, which has maintained an average annual growth rate of 10% since the COVID-19 pandemic.
World Bank Meetings to Spotlight Digital Future
Melinda Good, World Bank Country Director for Thailand and Myanmar, highlighted the upcoming significance of Thailand hosting the World Bank and IMF Annual Meetings in 2026. “This event is a great chance to highlight the future of important industries like digital services, green manufacturing, agriculture, and sustainable tourism,” she noted, with digital transformation expected to be a central theme.
Policy Recommendations for Digital Acceleration
“Digital technology opens new markets, boosts competitiveness, and supports economic diversification,” explained Ji-eun Choi, Senior Digital Economist at the World Bank. “To unlock this potential, Thailand needs better data, stronger infrastructure, and more digital skills.”
The report outlines comprehensive policy recommendations to accelerate digital adoption across all economic sectors, from small and medium enterprises and e-commerce platforms to healthcare and financial services. The World Bank calls for coordinated efforts to expand broadband infrastructure, strengthen data privacy protections, and foster innovation ecosystems.
The economic outlook underscores Thailand’s need to leverage digital transformation as a strategic tool for maintaining competitiveness and resilience in an increasingly complex global economic environment.
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