The Fiscal Policy Office (FPO) has slashed its forecast for economic growth this year to 3.3% from 3.7% amid concerns over exports.
Although exports swung back to growth in February and March, an 8.9% drop in January's exports compelled the Finance Ministry's think tank to cut its export forecast to a 0.7% contraction from 0.1% growth, said FPO deputy director-general Warotai Kosolpisitkul.
"Thailand's exports this year are constrained by uncertainties in the global economic recovery, China in particular, and our country's structural export problems," he said.
Kulaya Tantitemit, deputy spokeswoman for the Finance Ministry, said economic growth informally came in at 3% in the first quarter, so more than 3% growth for the remaining three quarters is a must to achieve the 3.3% target.
Tourism is a headwind for economic growth and the FPO has raised its target for international tourists this year to 33.8 million from 33 million, she said, representing 13% growth, up from 10%.
Growth of car loans and mortgages is cooling down, though household debt still keeps rising.
Household debt in last year's final quarter climbed to 11 trillion baht, or 81.5% of GDP, an increase from 10.8 trillion baht or 80.8% of GDP in the third quarter, according to Bank of Thailand data.
Meanwhile, the United Nations Economic and Social Commission for Asia and the Pacific (Escap) forecasts Thai GDP growth of 3.2% this year and 3.5% next year.
Economic growth is projected to continue its recovery trajectory this year, with the government's fiscal policy seen as the main driver of growth.
"There is no revision in Thailand's [economic growth] assessment and it is largely a gradual pickup compared to last year," said Hamza Ali Malik, head of Escap's macroeconomic policy and development division.
The government is recommended to use its fiscal policy to push growth impetus forward as the public debt ratio remains manageable, he said.
As of Jan 31, public debt accounted for 44.05% of Thailand's GDP, according to the Finance Ministry's Public Debt Management Office.
GDP growth has been below 3% for three years straight, marred by domestic political unrest, ebbing private investment, weak exports and a growing debt burden. Economic growth was recorded at 2.8% in 2015, 0.8% in 2014 and 2.9% in 2013.
Macroprudential policies should be implemented to mitigate escalating household debt in terms of limiting excessive credit expansion in certain sectors, such as housing, to balance supply and demand, said Mr Malik.
Financial institutions' exposure to foreign currency borrowing should be restricted in order to limit vulnerabilities associated with foreign exchange, he said.
"Consumer spending is expected to recover further, benefiting from relatively mild inflation, low interest rates and stimulus measures introduced in late 2015, although high household debt and weak rural incomes will continue to act as a drag on spending on durable goods," Escap said in its "Economic and Social Survey of Asia and the Pacific 2016" report.
"Private investment is set to return to positive growth in 2016 on the back of economic stimulus programmes and strong public investment."