The Asian Development Bank forecasts ASEAN growth at 4.7% in 2024, driven by manufacturing and investments. Vietnam leads, while Thailand lags at 2.6%, facing long-term geopolitical and climate challenges.
ASEAN Economic Growth Outlook
The Asian Development Bank (ADB) forecasts that ASEAN economies will grow by 4.7% in 2024, surpassing the previous estimate of 4.5%. This growth is largely attributed to increasing manufacturing exports and substantial government investments. However, Thailand is projected to lag behind its regional counterparts, with a GDP growth rate of only 2.6%, contrasting sharply with the Philippines at 6%, Malaysia at 5%, and Vietnam at 6.4%.
Despite an optimistic outlook for several nations, Thailand’s underperformance stems from inconsistent policy implementation and limited investment in essential sectors. The ADB anticipates that Thailand’s economy will rely heavily on government spending, tourism, and manufacturing growth in the first nine months of 2024. Meanwhile, Vietnam is set to lead the region in 2025, with an impressive 6.6% growth attributed to recovering exports and government stimulus.
The report underscores the pressing challenges facing ASEAN economies, including geopolitical tensions, global trade polarization, and climate change. While Vietnam’s economic resilience highlights potential for growth, all ASEAN nations must address these structural vulnerabilities. Implementing strategic policies will be crucial to balancing immediate economic gains with long-term sustainability and equitable development.
Source : Thailand Lags Behind ASEAN in 2025 Growth Forecast: ADB
