The Economic Outlook for Thailand in 2025
According to the International Monetary Fund[VD1] , Thailand’s economy is expected to grow modestly, with GDP projected to increase by 1.8% in 2025 and 1.7% in 2026. Contributing factors to this tempered pace include shifting global trade policies, softer exports, moderating consumer demand, and a gradual tourism rebound. However, if investment sentiment improves, GDP growth could reach 2.2% in 2025 and 1.8% in 2026. Consumer prices are forecasted to rise by 0.7% in 2025, maintaining relative stability.
Strategic Location and Geographical Advantages
Thailand’s economy is intrinsically linked to its advantageous geography as the heart of Southeast Asia. The country’s borders with Myanmar, Laos, and Cambodia—and its proximity to vast markets in China and India—enhance its role as a trade and logistics hub, bridging multiple cultural and economic regions.
Infrastructure: Backbone of Thailand’s Economy
A modern and extensive infrastructure underpins Thailand’s economy:
- Road Network: Thailand maintains an extensive system of international-standard highways. Plans are underway to build 4,150 km of motorways to further improve connectivity between economic corridors. Challenges remain, such as energy efficiency for bulk goods and enhanced road safety regulation. Bangkok’s chronic traffic congestion underscores the ongoing need for transportation upgrades.
- Rail Network: While Thailand’s railway system serves as a vital transport mode, it is relatively limited and underfunded. However, international links—such as the rail connection with Laos—support regional trade.
- Air Transport: Suvarnabhumi Airport in Bangkok is a state-of-the-art international gateway, supporting both tourism and business.
- Ports: Thailand has major port facilities, including Laem Chabang and Map Ta Phut, which are part of the Eastern Seaboard Development Plan.
Eastern Seaboard Development Plan
The Eastern Seaboard Development Plan is one of Thailand’s most ambitious economic initiatives, designed to accelerate industrial growth, attract foreign investment, and stimulate regional development. Centred on provinces such as Chonburi, Rayong, and Chachoengsao, the plan has transformed the Eastern Seaboard into a major industrial and export base. This region now hosts extensive manufacturing facilities, deep-sea ports like Laem Chabang, and integrated logistics hubs, making it a focal point for Thailand’s economic modernization and a magnet for multinational corporations.
Retail Trade in Thailand
Thailand’s retail sector is rapidly expanding, driven by rising incomes, shifting consumer preferences, and digital transformation. Shopping malls, hypermarkets, and convenience stores are proliferating in urban centres and increasingly in secondary cities. E-commerce and online retail platforms are also reshaping the retail landscape, offering consumers more choices and convenience than ever before. The retail trade is a significant contributor to the country’s GDP and employment, reflecting the vibrancy and adaptability of Thailand’s economy. International and local brands continue to invest, further cementing Thailand’s position as a regional retail hub.
Thailand’s general trade market, also known as traditional trade, is a significant part of the retail sector, with a market value in the billions of dollars. It encompasses the numerous small, independent shops and markets that are a vital part of the country’s commerce. The data on this enormous market is scant and the opportunities for CPG producers is significant.
How Frontline Research Group Can Support Market Entry and Expansion
With over 30 years of experience in market research within developing economies Frontline Research Group is well-positioned to assist companies seeking to capitalize on these opportunities.
In Thailand, approximately 46.39% of the population lives in rural areas. This means that over 33 million people reside in rural regions. Although the exact size of General Trade is known, it accounts for many Billions of Dollars’ worth of retail trade annually and offers significant opportunities for CPG businesses.
Frontline Research Group can assist CPG companies in better understanding these markets as well as with expansion or entry into these markets.
Key Offerings:
Retail Census and ongoing Retail Tracking: programs delivering reliable, up-to-date data on retail infrastructure, distribution channels, and competitive landscapes, enabling strategic decision-making.
Market Insights: Providing detailed intelligence on market coverage, distribution systems, point-of-purchase execution, shopper behaviours, trends to help tailor product and marketing strategies.
Advanced Tools and Methodologies: To help understand the complexities of traditional trade, urban and rural retail environments.
As Steve Johnson, Managing Director, notes, “Our ability to generate accurate data—especially in traditional trade sectors—gives companies a competitive edge in understanding and penetrating the Thailand retail market.”
Contact Information
For more information on what Frontline Research Group can do for you, please reach out to Steve Johnson: Tel. +230 5493 6376, email: steve@frontlineafrica.com in Mauritius or Gareth Ellis, Regional Manager: Southeast Asia on email: gareth.ellis@frontlineafrica.com
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