World Bank cuts Thailand's GDP growth forecast for 2025 by 1.1% to 1.8%, global growth slows to 2.3%
The World Bank has lowered its growth forecast for Thailand's gross domestic product (GDP) in 2025 by 1.1%, now predicting a growth rate of just 1.8%, citing weaker economic conditions amid global uncertainties.
It also revised its global economic growth forecast to 2.3%, the slowest pace in 17 years, since 2008.
According to a report by CNBC, the World Bank's Global Economic Prospects indicated that the Thai economy's growth will be impacted by global uncertainties, which are also affecting emerging markets and developing economies (EMDEs), including Thailand. Economic activities are also being disrupted by natural disasters, such as earthquakes.
For the global economy, the World Bank has revised the global growth forecast down to 2.3% for 2025, reflecting the impact of trade uncertainties. This marks a reduction from its previous forecast of 2.7%.
"This would be the slowest global economic growth rate since 2008, excluding the global recession," the World Bank said in its Global Economic Prospects report.
Indermit Gill, Senior Vice President and Chief Economist of the World Bank, stated that international conflicts, especially those related to trade, have disrupted policies that once helped reduce severe poverty and foster prosperity after World War II.
In addition to concerns about trade uncertainties, the World Bank also downgraded its 2025 growth forecast for the United States by 0.9% to 1.4%, and reduced the Eurozone's GDP forecast by 0.3% to 0.7%.
"Rising trade tensions could be the main reason for the slowdown in economic growth. However, the situation could improve if major economies reach long-term trade agreements," Gill said.
According to the World Bank's analysis, if the ongoing trade disputes can be resolved with agreements that halve current tariff levels by the end of May 2025, global economic growth could strengthen by approximately 0.2% on average during 2025 and 2026.
The United States and several of its trading partners are currently in negotiations following President Donald Trump's decision to increase tariffs on imports from multiple countries in April. Meanwhile, the U.S. and China are scheduled to meet in London this week, with discussions between the European Union and the U.S. also ongoing, ahead of the expiration of the trade truce in less than a month.
