World Bank Cuts Thailand 2026 GDP Growth Forecast to 1.6%
BANGKOK, Feb 11 (TNA) - The World Bank has lowered its economic outlook for Thailand, projecting GDP growth to slow to 1.6% in 2026 as the country faces a cooling global trade environment and persistent domestic headwinds.
The revised forecast, detailed in the latest Thailand Economic Monitor, cites a combination of high household debt and a limited tourism recovery as primary factors weighing on the kingdom’s growth trajectory.
The report anticipates a modest recovery to 2.2% in 2027—buoyed by the realization of foreign direct investment (FDI) projects.
The manufacturing sector continues to play a vital role in the Thai economy, accounting for 25% of GDP and employing 6.2 million people, or 16% of the workforce. However, the World Bank emphasizes the need to transition this sector toward 'advanced green manufacturing', noting that eco-friendly exports currently represent only 10% of Thailand’s total trade value.
Advanced green manufacturing is a high-potential engine to revitalize Thailand’s economic dynamism. Expanding into high-value, low-carbon sectors—such as electric vehicles, solar equipment, and energy-efficient appliances—will boost productivity, create jobs, and align the kingdom with shifting global demand.
Dr. Kiatipong Ariyapruchya, Senior Country Economist for Thailand, highlighted that expanding into advanced green manufacturing could boost GDP by an additional 2.9% by 2035.
The bank recommends that the government prioritize fostering competition in services and infrastructure, upskilling the workforce, and pursuing fiscal consolidation to adapt to shifting global demands and ensure long-term economic resilience.
