Thailand's Economic Reset: Finance Minister Lays Out Vision

Thailand’s Finance Minister, Pichai Chunhavajira has outlined plans for bold economic transformation in an effort to reform the economy, improve competitiveness, and develop new engines of growth with only two years left in the Pheu Thai government under Prime Minister Paetongtarn Shinawatra.

Key Highlights:

• Thailand faces sub-2% GDP growth in 2025 due to U.S. tariffs, prompting revised stimulus plans.
• Public debt at 60% of GDP seen as manageable if economic growth hits 5–6%.
• Government targets 3.0–3.5% growth in 2025 with fiscal policy as the main driver.

With many challenges and employable experience from outside and the specific constraints of the reciprocal tariffs implemented by the United States, Pichai warned that these headwinds will keep Thailand's GDP growth at less than 2% for a second straight economic year in 2025.

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"The core of solving the country's problems and building long-term sustainability is to drive significant economic growth. A strong economy will bring financial prosperity to both the private and public sectors. If the economy expands well, people will have more wealth, which will translate into increased tax revenue for the government and a reduction in the public debt-to-GDP ratio," stated Pichai.

Main fiscal policy purposes are required, in conjunction with economic sustainability to remove inequality that affects the future, even though public debt is still at roughly a manageable 60% or 12 Trillion Baht up from 40% of GDP in 2014 when the GDP growth was even close to be predicted with 5-6% separation similar to that from micro level individual borrowers to buy the government revenue-generating capacity.

The government was able to achieve the 2.5% growth last year with the policymaking within a target of 3.0% to 3.5% for 2025 and inflation rate target keeping in at 1.5%.However, global trade disruptions and geopolitical tensions remain concerns, prompting more targeted support for exporters, supply chain players, and labourers.