Small and Medium Enterprises (SMEs) and innovation hold significant importance for Thailand's future competitiveness.

Thailand's economy is on the mend, with significant strides being made towards a brighter future. According to the latest Thailand Economic Monitor, the country's GDP is projected to grow by 2.9% in 2025, up from 2.6% in 2024. This growth is mainly driven by a rebound in investment, higher budget execution, and pipeline infrastructure projects.

However, challenges remain, particularly in the areas of reducing high household debt, revitalising private investment, and ensuring fiscal sustainability amid rising spending needs caused by climate risks and population ageing.

One critical aspect of Thailand's future growth lies in the potential of small and medium-sized enterprises (SMEs) and digital start-ups. SMEs hold significant promise to become a stronger driver of future growth in Thailand, and developing digital start-ups is crucial for future competitiveness.

The Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) has announced its commitment to supporting SMEs in Thailand. Through improved services within the framework of the Asian Economic Cooperation (ACE) measures, GIZ aims to facilitate the expansion and access to financing, technology, and international markets for these businesses.

Enhancing regulatory frameworks, especially for competition, trade, and investment, and expanding financial support are key to supporting the growth of digital start-ups in Thailand. Education and training programs on digital and entrepreneurial skills would also help equip workers with the capabilities they need to drive innovation and business expansion.

Tourism and private consumption have also supported growth, with tourism projected to return to pre-pandemic levels by mid-2025. This sector's recovery is expected to boost the economy further, contributing to Thailand's journey towards a more prosperous future.

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Moreover, the ongoing economic recovery and the government's 10,000-baht cash transfer program have contributed to a decline in Thailand's poverty rate. In 2024, the poverty rate declined to 8.2%, down from 8.5% in 2023.

In conclusion, the future of Thailand's economy lies in the hands of its SMEs and digital start-ups. With the right support, these businesses can play an important role in the country's growth and competitiveness in the global market.