Experts say prolonged Middle East tensions could keep oil prices high, lifting inflation and slowing growth. SCB EIC has cut its Thailand growth forecast to 1.4% in the base case, while CIMB Thai warns inflation moving above 2% is a danger point.

An article titled How Thailand became the ‘sick man’ of Asia, published by the Financial Times on February 3rd, 2026, has drawn considerable attention among Thai economists. It documented the Thailand’s anaemic growth,  slowdowns in consumption, manufacturing and tourism, and the mounting pressures on household incomes and national stability. Structural weaknesses have deepened. Thailand, Southeast Asia’s second-largest economy, has been stuck in a low-growth trap of roughly 2% for the past five years.