NESDC outlines strategies to boost economy amid global uncertainty

The National Economic and Social Development Council has urged the government to prioritise several key strategies to bolster the Thai economy in the face of global economic headwinds.  

At a press conference on Monday, the NESDC outlined measures to mitigate the impact of changing trade policies, stimulate private investment, accelerate budget disbursement, address debt issues, and support the tourism sector.

The NESDC emphasised the need for proactive measures to address potential disruptions from trade-policy shifts by major trading partners. 

These include intensifying trade negotiations with the United States and preparing for potential countermeasures, strengthening import-quality inspections to combat dumping and unfair trade practices (including stricter regulation of foreign digital platforms), and expediting investigations into anti-dumping, countervailing duties, and safeguard measures.

The council also stressed the importance of promoting high-potential export products that can navigate trade barriers and accelerating existing FTA (free-trade agreement) negotiations while exploring new trade partnerships. Furthermore, businesses should be encouraged to manage exchange-rate risks, with support provided to reduce export costs.

To reignite economic growth, the NESDC called for accelerated private investment. Key strategies include boosting investor confidence to attract foreign direct investment (FDI), particularly through promoting joint ventures with Thai businesses (especially small and medium-sized enterprises) amid investment-relocation trends. 

Existing manufacturers should be encouraged to expand capacity within Thailand. The implementation of approved investment projects from 2022-2024 needs to be fast-tracked, and a supportive ecosystem developed for targeted industries by easing regulatory burdens, addressing labour shortages, and improving productivity.  

Innovation and cutting-edge technology should be promoted to drive the production of high-value goods, while domestic raw-material and intermediate-goods industries should be upgraded to enhance integration into global supply chains.

The NESDC stressed the importance of accelerating budget disbursement, particularly capital expenditure, targeting a minimum of 75% of the total investment budget. 

Investment should be focused on strategic projects, including local infrastructure, major public works, and water-resource management, to strengthen productive capacity and ensure equitable resource distribution.

Addressing household and business debt is also crucial. The NESDC recommended raising awareness of existing government assistance programmes for debt restructuring, particularly for small-scale debtors and SMEs.
 

Continued expansion of the tourism sector requires immediate action to tackle PM2.5 (fine-particulate) air pollution to maintain tourist confidence. Safety standards for tourists must be upheld, and tourism-related infrastructure, including airport capacity, flight availability, immigration procedures, transportation, and environmental management, must be enhanced.

NESDC secretary general Danucha Pichayanan projected the Thai economy to grow by 2.3-3.3% in 2025, driven by increased government spending, private consumption and investment recovery, tourism sector rebound, and export growth.  

Private consumption is forecast to increase by 3.3%, and private investment by 3.2%. Export value is expected to grow by 3.5%, with headline inflation between 0.5-1.5% and a current account surplus of 2.5% of GDP.

The NESDC’s fourth-quarter 2024 GDP figures showed 3.2% growth, up from 3.0% in the previous quarter. Public investment and exports accelerated, while private consumption continued to expand. However, government consumption expenditure slowed, and private investment contracted.  

For 2024 as a whole, gross domestic product grew by 2.5%, compared with 2.0% in 2023. Private consumption expenditure grew by 4.4%, and government consumption by 2.5%. Public investment increased by 4.8%, while private investment fell by 1.6%. Exports grew by 5.8%.