Thailand Businesses Brace for 2026 Headwinds as Election Looms

Thailand 2026 economic outlook is clouded as growth is forecast at about 1.5%, prompting businesses to brace for headwinds ahead of a Feb 8 general election, executives and industry groups said.

Banks, automakers and property developers cited weak demand, high household debt and policy uncertainty.

The Thai Bankers’ Association said more frequent natural disasters are adding operational and credit risks, forcing lenders to factor climate events into risk management.

Toyota Motor Thailand president Noriaki Yamashita said policy momentum from a new government is needed as weak spending and spillovers from the Thai-Cambodian border dispute weigh on demand.

Tourism groups said arrivals remain resilient despite a dip in 2025, while developers pointed to fragile purchasing power, shaping the Thailand 2026 economic outlook.