Thailand's economy grew by 2.5% in the October-December quarter from a year earlier, beating forecasts and showing a strong rebound despite a drop in tourism. The National Economic and Social Development Council (NESDC) said domestic demand and investment fueled growth. This beat the 1.2% growth seen in the September quarter and topped the predicted 1.0%. Quarter-on-quarter, Thailand expanded 1.9%, the fastest in four years, after shrinking 0.3% in the previous quarter. The Thai stock market jumped over 1%, reaching its highest since December 2024. The NESDC raised its 2026 growth forecast to 1.5% to 2.5%, up from 1.2% to 2.2%. Thailand’s economy grew 2.4% in 2025. Finance Minister Ekniti Nitithanprapas said government support helped. “This patient has been out of the ICU today,” he said. He expects growth of at least 2% in 2026 and hopes for 3%. Since the pandemic, Thailand lagged behind neighbors due to US tariffs, high household debt, and a strong baht. Economist Shivaan Tandon from Capital Economics warned growth might not last. “Recent election results reduce political risk but do little to improve a challenging outlook,” he said. Thailand’s Prime Minister Anutin Charnvirakul’s party won the most seats and formed a coalition with Pheu Thai, possibly bringing political stability. The NESDC’s Danucha Pichayanan said fast government formation could speed budget support for the economy. Exports are expected to rise 2% in 2026. Tourist arrivals may reach 35 million this year, still below the pre-pandemic record of nearly 40 million.