BANGKOK, Sept 3 (TNA) – The Thai Chamber of Commerce voiced deep concern over the country’s political instability, warning that a prolonged delay in forming a new government could severely impact the economy.
Poj Aramwattananont, Chairman of the Thai Chamber of Commerce and Board of Trade of Thailand, stated that the current political situation is in “a state of turmoil.” He expressed hope that the situation would become clearer by the afternoon.
The private sector does not care which side forms the government, as long as a resolution is found quickly,” he said, following reports that the People’s Party has supported the Bhumjaithai Party in forming a government, while the Pheu Thai decides to dissolve parliament.
He emphasized that continued political uncertainty would be detrimental to the Thai economy, which is already facing numerous challenges. These include declining domestic purchasing power, high household debt, U.S. trade tariffs, global geopolitical conflicts, and border issues with a neighboring country.
He added that foreign investors, Thai entrepreneurs are all closely watching the situation. Businesses are being directly affected by the lack of a clear leadership that can coordinate with all sectors and implement measures to address these economic issues in this vulnerable period.
The Joint Standing Committee on Commerce, Industry and Banking (JSCCIB), which met earlier today, echoed these sentiments. The private sector’s priority is to see a capable and widely accepted cabinet that can effectively manage the country and revitalize the economy.
The business council forecasts Thailand’s 2025 GDP will grow at a rate of 1.8%-2.2%, with the second half of the year likely seeing growth of only about 1%.
Rising economic pressures are attributed to political uncertainty, which could impact budget disbursements and erode private sector confidence in future investment decisions. The country also faces a higher risk of a credit rating downgrade.-819 (TNA)
