The Bank of Thailand (BoT) warned the tariff-hit country is suffering a deeper-than-expected downturn, with the economy having likely posted its first quarterly contraction since the end of 2022.
The Thai central bank revised down its third-quarter output projection to minus 0.5% from the second quarter, according to the latest forecasts published Wednesday. It now anticipates a 0.5% expansion for October to December 2025.
BoT senior director Pranee Sutthasri attributed the contraction to multiple factors, ranging from temporary plant closures to the impact of tariffs imposed by the United States government.
“The economy will recover in the fourth quarter as plants reopen and the government’s stimulus measures boost consumption,” she said.
The downward revisions come a day after Thai manufacturers warned they are being hit by a double-whammy of US tariffs and a relatively high baht.
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In neighbouring Vietnam, its government is targeting annual economic growth of at least 10% over the next five years, even as US tariffs and global trade uncertainty threaten to weigh on exports and investments flows.
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