More and more Thai households are trapped in a debt stranglehold. As the cost of living increases, incomes lag and dependence on loans grows. The effects are felt in every facet of society, from mental stress and youth debt to a stagnant economy. The government is stepping in, but the underlying causes remain persistent.
Moody's has downgraded Thailand's credit outlook to negative from stable, reflecting structural concerns about high debt, an ageing population, faltering exports and a lack of reforms. Although the immediate impact is limited, analysts see this as a clear warning sign. Without action, Thailand risks losing its credit rating, leading to higher borrowing costs, lower investor confidence and a weakening economic position.
Credit rating agency Moody's has downgraded Thailand's outlook from stable to negative. This is not an immediate downgrade of the credit rating, but it is a clear signal. Structural weakness, rising debt and global uncertainties are putting pressure on the economy. The Thai government must act quickly to stimulate growth and maintain confidence in the financial markets.
Thai economy under pressure from US-China conflict
The escalating trade war between the United States and China is also leaving its mark on Thailand. Although the country is not directly targeted by US tariffs, the Thai economy is suffering from global uncertainty. The export sector and supply chains in particular are coming under pressure, while economists warn of long-term effects and limited policy space.
Thailand threatens to enter technical recession
Thailand's economy may shrink for the second quarter in a row. Causes include deteriorating trade relations with the US, a sharp drop in exports and the aftermath of the Myanmar earthquake. The government is now preparing emergency measures.
Bank of Thailand expects economic growth of over 2,5%
Thailand is struggling with moderate economic growth, but the central bank sees no reason to cut interest rates further. Governor Sethaput Suthiwartnarueput insists that the current 2% interest rate is robust and appropriate for the economic circumstances. The government is targeting 3% growth, supported by stimulus measures and a recovery in tourism.
Thailand is facing a rapidly growing elderly population and a shrinking working population. This is leading to shortages in the labor market, rising healthcare costs and pressure on the pension system. But does an aging population also offer opportunities? What can Thailand do to future-proof its economy? This article highlights the challenges and opportunities of an aging society.
The Thai baht is one of the most stable currencies in Asia, even when the economy is struggling. How is that possible? Smart monetary policy, strong trade surpluses and investor confidence keep the currency resilient. Large foreign exchange reserves and a strategic role in the region also play a crucial role. This article explains why the baht holds up.
Thailand's central bank has decided to cut its policy rate by 0,25%, bringing it to 2%. This is the lowest rate in two years and was approved by the Bank of Thailand's Monetary Policy Committee (MPC) with a 6-1 vote. The cut is effective immediately and is intended to support economic growth and ensure financial stability.
Thai economy grows less strongly than expected, but optimism remains
Thailand’s economy grew by 2024% in the last quarter of 3,2, below the expected 3,9%. However, the outlook for 2025 remains stable, with optimism about investment, tourism and exports. The Bank of Thailand is monitoring interest rate policy as policymakers work on strategies to keep the economy on track.
Thailand to reach highest investment level in a decade in 2024
Thailand is set to record 2024 trillion baht in investment in 1,13, the highest in a decade. With thousands of approved projects in sectors such as digital technology, electric vehicles and biotechnology, Thailand is cementing its position as an economic hub in Southeast Asia. This growth is creating tens of thousands of jobs and strengthening global supply chains.
Thailand strengthens economy with ambitious trade policy
The Thai Ministry of Commerce is implementing ten strategic initiatives to boost trade and investment and enhance economic stability. From free trade agreements to digital innovations and promoting Thai products worldwide, the policies aim to strengthen Thailand’s international position as a reliable trading partner and economic force.
Thailand maintains strong credit rating with optimistic outlook
S&P Global Ratings has affirmed Thailand's credit rating at BBB+ with a stable outlook. The country is benefiting from steady economic growth, supported by strategic investments and a recovery in the tourism sector. With new stimulus measures and a growing current account surplus, Thailand continues to demonstrate its economic resilience, while political stability allows for further progress
Discover Thailand (17): the Economy
Thailand's economy is one of the strongest and most diverse in Southeast Asia. The country is the region's second largest economy after Indonesia and has a growing middle class. Thailand is a major exporter of goods such as electronics, vehicles, rubber products and agricultural products such as rice and rubber.
Pineapple is known worldwide and is also called "king of tropical fruit". This fruit is native to Brazil and a number of other South American countries. World production is now dominated by Southeast Asia, especially Thailand and the Philippines.
The ten largest banks in Thailand
If you already have regular contact with a Thai bank to arrange your financial affairs, you will know most banks in Thailand. There are 35 different banks, but the list below is limited to the ten largest banks in terms of assets. Interesting to read and a nice guide for newcomers.
The development of Eastern Economic Corridor – EEC (video)
The Eastern Economic Corridor (EEC) is in full development. This video follows two important projects, the construction of a High-Speed Rail connecting 3 airports and the development of the U-Tapao airport in Rayong province.
Rubber innovations should save industry in Thailand (video)
There are more than 1 million farmers in Thailand who earn a living from the exploitation of rubber trees. Thailand is the world's largest producer of natural rubber, producing 4,7 million tons and exporting 3,8 million tons.
Thailand's position in the world rice market
The famed jasmine rice, the star of Thailand's grain exports, won a top prize at the World Rice Conference this month for the sixth time since 2009. The “Khao Dawk Mali 105” – a code name for the most famous Thai jasmine rice variety – beat rivals from Cambodia, China, the United States and Vietnam with “its combination of aroma, texture and taste,” said the jury of the annual Rice Suppliers Forum and policymakers.
Economic overview Thailand – Netherlands first half of 2020
The Dutch embassy in Bangkok regularly publishes economic overviews of trade between Thailand and the Netherlands.