What To Know
- Thailand’s consumer confidence has taken another sharp hit, falling for the sixth consecutive month in July to its lowest point in over two and a half years.
- Thai consumer confidence is simply going decreasing as there seems to be a lack of confidence in the current government and its policies Image Credit.
Bangkok Business News: Confidence Index Hits 31 Month Low
Thailand’s consumer confidence has taken another sharp hit, falling for the sixth consecutive month in July to its lowest point in over two and a half years. The University of the Thai Chamber of Commerce (UTCC) survey revealed the index slipped to 51.7 from 52.7 in June, underscoring a growing sense of economic unease among the public. This Bangkok Business News report notes that concerns over stagnant growth, high living costs, and an unstable political climate are combining to sap purchasing power and erode optimism.
Thai consumer confidence is simply going decreasing as there seems to be a lack of confidence in the current government and its policies
Image Credit: AI-Generated
UTCC president Thanavath Phonvichai warned that sentiment shows “no signs of recovery” and predicted GDP growth could slow to just 1.7% in 2025, down from 2.5% last year. “The economy shows signs of stagnation and needs more stimulation,” he said, adding that households remain cautious in their spending habits.
Trade Tensions and Tariff Uncertainty
External pressures are also weighing heavily on Thailand’s outlook. Although the United States has reduced tariffs on Thai imports from 36% to 19%, the lack of clarity on transshipment rules—particularly for goods passing through Thailand from other countries—continues to unsettle exporters. Thanavath stressed that these regulations must be clearly defined to allow businesses to adapt their strategies.
The uncertainty comes at a time when global trade tensions are already dampening investment confidence, with many Thai exporters hesitant to commit to expansion plans without clearer market signals.
Political Turmoil Adds to the Gloom
Domestic instability is further weakening confidence. The suspension of Prime Minister Paetongtarn Shinawatra over a controversial phone conversation with former Cambodian leader Hun Sen has thrown the political landscape into disarray. The pending court decision has only deepened doubts about the country’s short-term governance and policy direction.
“The political situation remains unstable following the prime minister’s suspension from duty, creating an unclear outlook and undermining confidence,” Thanavath observed. The uncertainty is discouraging both consumer spending and corporate investment at a critical time for the economy.
Economists Urge Swift Action
Experts agree that without decisive government intervention, the risk of a prolonged downturn is growing. Persistent inflation, slow wage growth, and declining consumer morale are combining to suppress household spending. The UTCC has called for stronger fiscal stimulus measures to revive domestic demand and restore confidence.
Many economists argue that a coordinated policy approach—combining targeted subsidies, tax incentives, and business support programs—will be essential to steer Thailand away from a deeper slowdown. With both global and domestic challenges mounting, the urgency for effective action has never been greater.
Thailand’s economic future now hinges on whether policymakers can navigate this volatile period with speed and precision. Without a strong recovery plan, the nation risks facing not just slower growth, but a prolonged period of economic stagnation that could take years to reverse.
For the latest on the Thai economy, keep on logging to Bangkok Business News.
