Market Update: We break down the business implications, market impact, and expert insights related to Market Update: Thai Business Leaders Slash GDP Forecast Amid Political Turmoil – Full Analysis.
The Joint Standing Committee on Commerce, Industry and Banking (JSCCIB) warned on Wednesday that Thailand’s economy is entering a slowdown phase, with growth in the second half of the year expected to reach only around 1%.
The committee now projects GDP growth of 1.8-2.2% for 2025, a significant reduction from earlier forecasts. In March-April, the projection ranged from 2.4-2.9%, which has been steadily revised downward through the year.
Thailand’s economic performance has already begun to weaken, with second-quarter growth slowing to 2.8% from 3.2% in the first quarter.
The unemployment rate rose to 2.07% in Q2 from 1.88% in Q1, whilst the number of underemployed reached 2.1 million people, up approximately 5% year-on-year.
Key sectors including tourism, construction, property, and agriculture are experiencing slowdowns.
Small and medium enterprises (SMEs) are particularly vulnerable, evidenced by increasing non-performing loans over 90 days, especially among smaller SMEs with outstanding credit not exceeding 100 million baht.
Payong Srivanich, chairman of the Thai Bankers’ Association and meeting chair, joined Federation of Thai Industries chairman Kriengkrai Thiennukul and Thai Chamber of Commerce chairman Dr Poj Aramwattananont in expressing concerns about the economic outlook.