Political uncertainty threatens Thailand’s economy, private sector warns

They warn that ongoing instability could further weaken Thailand’s already fragile economy, urging the government to prioritise national unity and long-term economic stability.

Real estate leaders warn against premature House dissolution

Isara Boonyoung, Chairman of the Board of Trade of Thailand’s real estate, design and construction trade committee, emphasised that house dissolution at this critical time could lead to a dangerous political vacuum. Thailand cannot afford further instability. 

Political fragmentation, combined with global economic recessions, US tariff concerns, and border issues, threaten to deepen economic vulnerability

“Political uncertainty will worsen Thailand’s economic fragility. All parties should help maintain the situation and avoid rushing into House dissolution, because what the country needs most now is stability and unity in crisis management,” Isara said.

He also called on the government to partner with national security agencies to effectively communicate and build public confidence, particularly in border issues. He stressed that policy decisions have to prioritise long-term national and economic stability and public confidence.

Tourism sector suggests House dissolution could offer fresh start

Thienprasit Chaiyapatranun, President of the Thai Hotels Association (THA), expressed concern over the effects of domestic political tension and Thai-Cambodian relations on tourism. 

He suggested that House dissolution may be the best option to initiate change, create new opportunities, and restore public trust under a newly elected government.

He emphasised that the tourism sector does not support mass street protests or any moves toward military intervention. The clearest path forward is a democratic one. If a political vacuum occurs, it must be short and strategic, he said.

He warned that tourism stimulus packages that are currently awaiting Cabinet approval may be delayed due to the political situation. He also suggested that the projects should be carried forward by the next government.

Regarding Thai-Cambodian tensions, there hasn’t been any significant impact on international tourist flows so far. European tourists crossing borders to Cambodia remain largely unaffected, partly due to the current low season. 

Cambodia's share of the tourist market is not large enough to significantly disrupt Thailand's tourism sector, he added.

Retail sector reports declining consumer confidence

Somchai Pornratanacharoen, Honorary Advisor to the Thai Retailer Association, stated that recent political events have severely shaken consumer confidence and urged the government to take serious steps.

“We urge the government to consider House dissolution to allow fresh elections, bringing new leadership and restoring national credibility,” he said.

He added that since the beginning of the year, both economic sentiment and purchasing power have largely declined. 

Despite the government’s 200-billion-baht digital wallet stimulus program, the expected economic recovery has not materialised. Many small grocery stores in rural areas across the country have seen sales drop by 40–50%, he pointed out.

Major retailer warns of bleak second half

Milin Veerarattanaroj, the CEO of Tung Ngee Soon Super Store in Udon Thani, shared similar concerns. The business atmosphere is stagnant, with companies on hold as they await clarity on the political situation.

He urged the government’s resignation to make way for new leadership capable of restoring national and economic order.

“Prolonged political uncertainty will continue to suppress consumer spending and business recovery in the second half of the year,” he warned

In contrast, he noted that a bold response to Cambodia, such as closing the border entirely or disrupting electricity and internet services, might harm Thai exporters, but could shift the domestic narrative positively.

Media and advertising industry on alert

According to sources in the media and advertising industry, ad spending has not yet slowed significantly, but a cautious ‘wait-and-see’ sentiment is emerging among major consumers. 

Despite tightening budgets, most firms are not ready to halt marketing efforts entirely. Political events haven’t stopped companies from advertising, however, the sector is among the first to feel the impact.

“Recent leader leaks have shaken confidence across the business community. Trust in leadership is essential for long-term planning.” a source said.