Thailand Targets 3% Growth Through Investment Push
Thailand's government targets 3% economic growth by boosting private and public investment, which expanded roughly 10% and aims for 9.4% respectively in early 2025, while addressing risks from inflation and a ballooning current account defi
Deputy Prime Minister and Finance Minister Ekniti Nitithanpraphas said at a 2025 economic journalism development seminar that Thailand's economy has operated like a single-engine aircraft powered solely by exports, making it fragile when global economies slow. Domestic consumption and investment remain weak, and successive stimulus policies have increased public debt. Over the past seven months, the government has prioritized investment-driven growth, with private investment in the first quarter of 2025 expanding roughly 10% and public sector investment targets set at 9.4% growth.
The government must monitor two key risks: accelerating inflation from energy prices and a current account deficit exceeding $14 billion over two months, roughly 600 billion baht, reflecting higher spending than income that could impact economic stability. To capitalize on global economic shifts and production relocation, Thailand must pursue new investment opportunities in future industries, unlock clean electricity trading through the Direct PPA system without quota limits to accommodate AI and data center investment, and address the European Union's environmental standards (CBAM).
Long-term economic strengthening requires three reforms: clean energy transition, support for aging societies, and workforce upskilling through the Skill Bridge program. Ekniti emphasized three priorities: improving Thai workers' skills, enabling seniors to work longer, and attracting more skilled foreign workers, with a target of restoring economic growth above 3%. Under a public-private cooperation committee, the government will support the private sector through fiscal measures, trade policies, workforce development, regulatory relief, and clean energy infrastructure investment.
Regarding citizens stripped of welfare card benefits after being fraudulently listed as company directors or shareholders, the government confirmed it will restore rights upon verification of non-involvement. The issue stems from incomplete government databases rather than screening flaws. A new registration round found 2.3 million newly eligible recipients, with over 5 million of 9 million cardholders aged 20-60 in the working-age bracket. The government plans upskilling and job placement measures to lift incomes above poverty, emphasizing that budget is not a constraint as current welfare spending reaches approximately 70,000 million baht annually alongside other benefits.
