Thailand’s economic growth is expected to reach 2.1% this year before slowing to 1.6% in 2026, amid increasing economic headwinds, the International Monetary Fund (IMF) said. Economic conditions suggest there is room for further monetary easing, the IMF said in a statement dated November 13, following a staff visit to Southeast Asia’s second-largest economy, as Reuters reported. “Rising economic challenges amid limited policy space call for careful calibration of the policy mix to maximize effectiveness,” the statement added. In October, the Bank of Thailand unexpectedly held its one-day repurchase rate steady at 1.50%. The central bank had previously made four rate reductions totaling 100 bps since October 2024. Separately, a Reuters poll showed the country’s GDP is expected to ease to 1.6% yoy in Q3, slowing from 2.8% in Q2. The official Q3 GDP data is scheduled for release on November 17. Last year, the economy grew 2.5%, lagging behind its regional peers.
