BANGKOK, Jan 7 (Reuters) – Thailand’s central bank said on Wednesday that the economy is facing challenges, including a sustained decline in competitiveness, with exports expected to be negatively affected by U.S. tariffs.
Southeast Asia’s second-largest economy has been struggling with an appreciating currency, U.S. tariffs, high household debt, a border conflict with Cambodia and political uncertainty ahead of elections in early February.
Ahead of a monetary policy forum, the Bank of Thailand said that GDP growth in the second half of last year is expected to have reached 1.3% year-on-year, with exports up 9.1% over the period.
It said deflation risks remained low and medium-term inflation expectations were still anchored within the country’s target range of 1% to 3%.
The central bank said the strong baht was tightening liquidity for small- to medium-sized exporters, which is weighing on shipments.
BOT deputy governor Piti Disyatat told the Reuters Global Markets Forum on Tuesday that economic growth was expected to have turned positive in the fourth quarter of 2025, and he expected last year’s growth forecast of 2.2% would be met.
(Reporting by Chayut Setboonsarng and Thanadech StaporncharnchaiWriting by David Stanway; Editing by Martin Petty and John Mair)
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