Bangkok’s Digital Economy: A Predicted 4.85 Trillion Baht Surge
Thailand’s digital economy is projected to experience significant growth in 2025, with its GDP expected to increase by 7.3% to a staggering 4.85 trillion baht, according to the Digital Economy and Society (DES) Ministry. This impressive growth rate—more than double the projected national GDP growth of 2.8%—highlights the digital sector’s burgeoning importance in powering the Thai economy. This sector is projected to contribute 19.2 trillion baht to the national economy.
Fueling this expansion is a projected 9.9% increase in digital investment, 2.7 times higher than the anticipated growth rate for overall investment in the country. DES Minister Prasert Jantararuangtong affirmed the government’s commitment to leveraging the digital economy to bolster Thailand’s competitiveness and attract crucial investment in cutting-edge technologies, particularly cloud services and data centers.
Mr. Jantararuangtong cited the global context underpinning these projections: a global economic growth forecast of 3.3%, a 5% increase in government digital investment, and a 10.3% rise in private sector digital investment worldwide. The ministry’s forecast also incorporates significant foreign investment inflows into digital businesses, including cloud computing, data centers, and artificial intelligence (AI).
Several key factors drive this optimistic outlook: the government’s proactive “cloud first” and digital hub policies; the acceleration of digital government initiatives; the growing private sector adoption of AI; and the increasing preference for digital payment systems among Thai citizens and international tourists. However, the DES ministry acknowledges potential headwinds, including global political volatility, trade tensions, geopolitical conflicts, limitations in supporting clean energy investments and attracting skilled personnel for foreign investments, and regional competition for digital investment.
Wetang Phuangsup, Secretary-General of the National Digital Economy and Society Commission, emphasized the digital economy’s remarkable expansion, positioning it as a crucial pillar supporting Thailand’s economic growth. He attributed the anticipated rise in digital investment to strategic government policies designed to attract both domestic and foreign direct investment, particularly in cloud services, data centers, advanced manufacturing technologies, electronic components, and other digital products.
Beyond investment, private digital consumption is also expected to flourish, with a projected growth of 7.6%, exceeding the overall consumption growth estimate of 3.3%. This surge reflects the growing popularity of online shopping among Thai consumers. Government digital consumption is also on an upward trajectory, predicted to increase by 4.3% due to the development of advanced management systems and the increasing provision of government services through digital platforms.
Furthermore, the value of exports of digital goods and services is expected to rise by 5.5% in 2025, driven by robust demand for electrical appliances and electronic products, the expanding electric vehicle industry, wider adoption of digital services across various sectors, growing awareness of AI technology, and the increasing use of online platforms by foreign tourists for booking accommodations and travel services.
In conclusion, Thailand’s digital economy is on the cusp of a transformative period, propelled by strategic government policies, increasing investment, and evolving consumer behavior. While challenges remain, the country’s digital landscape is poised for significant growth, promising to play a vital role in shaping the future of the Thai economy.
