Thailand’s economy grew faster than expected in the fourth quarter of 2025 from a year earlier, boosted by industrial and retail trade, official data showed on Monday, though the agriculture sector slowed.

Gross domestic product grew 2.5% in the October-December quarter from a year earlier, the National Economic and Social Development Council said.

That was higher than the annual growth of 1.2% in the September quarter, and beat a median forecast of 1.0% growth in a Reuters poll.

On a quarterly basis, Southeast Asia’s second-largest economy expanded by a seasonally adjusted 1.9% in the October-December quarter, the highest in four years, compared with the poll forecast of 0.3% growth.

Over the whole of 2025, growth reached 2.4%. The council also adjusted its 2026 growth outlook to 1.5% to 2.5%, from a previous range of 1.2% to 2.2%.

Lagging regional peers since the pandemic, the Thai economy has faced multiple headwinds, including US tariffs, high household debt, and a strengthening baht.

The council projected that exports, a key driver of Thai growth, would rise 2.0% this year, compared with a 0.3% drop projected earlier.