What To Know
- A stronger currency is eroding the competitiveness of goods in overseas markets and narrowing margins for businesses already struggling to recover from post-pandemic challenges.
- If the new administration can deliver effective action and clear communication, there remains a narrow but real window to rebuild confidence and steer the economy back toward sustainable growth.
Bangkok Business News: Private sector issues urgent warning
As the country’s new government settles in, the private sector is growing increasingly vocal about the economy’s fragile state. Business leaders warn that without immediate intervention and bold policies, national growth could fall to as low as 0.3 percent in the fourth quarter of 2025. This Bangkok Business News report highlights that major business associations are pressing the government to restore investor confidence, maintain policy consistency, stabilize the baht, and stimulate local demand for domestically made products.
Business leaders urge swift and bold action to avert a deeper economic slowdown
Image Credit: AI Generated
Economic headwinds multiplying
Private sector executives cite weakening household consumption, rising personal and corporate debt, and sluggish exports as the primary threats to economic recovery. Domestic industries are already facing reduced production levels, especially in manufacturing, as purchasing power declines. Exporters are also struggling with growing international trade barriers and tariffs that have squeezed profit margins and competitiveness in key markets.
Adding to these pressures is political uncertainty. With a new government transition underway and an extended parliamentary recess ahead, investors are concerned about delays in implementing new fiscal and monetary measures. Business leaders have warned that inconsistent policies or unclear economic signals could damage investor sentiment and reduce capital inflows.
The appreciation of the baht, while seen by some as a sign of stability, has instead become a source of anxiety for exporters. A stronger currency is eroding the competitiveness of goods in overseas markets and narrowing margins for businesses already struggling to recover from post-pandemic challenges. Many economic experts agree that the issue is not simply the baht’s level but its volatility. Sudden fluctuations can disrupt supply chains, discourage investment, and lead to speculative pressures on the financial system.
Private sector demands decisive action
Leaders from major industries are urging the government to move beyond political promises and start delivering concrete economic measures. They want swift stimulus programs that focus on household consumption and emphasize local manufacturing under expanded co-payment schemes. Calls are also growing for comprehensive structural reforms to tackle long-term issues such as an aging population, low productivity, and the slow adoption of new technologies across small and medium enterprises.
Many corporate voices stress that stabilizing the baht must become an urgent priority through coordinated policy tools. They have also cautioned that a potential credit rating downgrade could severely impact investor confidence, though some see it as an opportunity to accelerate fiscal and administrative reforms.
The stakes are high
Without strong and immediate policy execution, the country risks being trapped in a prolonged cycle of weak consumption, limited fiscal maneuverability, and diminished export performance. The private sector insists that stability, continuity, and transparency from policymakers are now essential to avoiding stagnation. If the new administration can deliver effective action and clear communication, there remains a narrow but real window to rebuild confidence and steer the economy back toward sustainable growth. The coming months will determine whether that window stays open.
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