We have officially entered the final month of 2025, and in just a few days we will step into 2026, a year of hope and new beginnings for many.
Throughout the year 2025, Thailand faced numerous challenges, including border security issues between Thailand and Cambodia, the escalating global trade war, and natural disasters that caused significant damage to lives and the country’s economy.
As life must go on, Thailand must move forward, and the year 2026 will be another challenging year for the government, testing whether it can lead the country through the myriad of problems that lie ahead.
Under fierce competition and the development of rivals in the global market, as well as the rules and regulations set by world powers, such as tariffs and trade barriers, Thailand’s efforts must be even greater.
To ensure Thailand remains strong on the world stage, the government has designated next year as the “Year of Investment” to propel the country forward steadily.
Deputy Prime Minister and Minister of Finance , Dr. Ekniti Nitithanpraphas, indicated that it is time for Thailand to reset its investment strategy, focusing on “resetting four key problems”: economic issues , instability , inequality, and environmental problems.
Thailand has not seen any new investment for a long time, as reflected in the investment figures from before 1997, when it was as high as 40% of GDP , but has now fallen to only 22%, a drop of almost half.
Meanwhile, the government is also moving forward with its inequality reduction package, enhancing workforce skills, opening doors for skilled foreign workers in areas where Thailand lacks expertise, and promoting Supply Chain Financing through PromptBiz to enable large businesses to provide liquidity to SMEs and drive the transition to a green supply chain.
Dr. Ekniti stated that although the economic growth figure for this year is projected at 2%, it is merely “relying on past performance,” reflecting the results of past investments. Therefore, Thailand needs to accelerate new investments to further stimulate the country’s economy.
Meanwhile, Commerce Minister Supajee Suthamphan viewed global trends putting pressure on the trading system as opening up new opportunities if Thailand could identify the right timing and position itself appropriately. She emphasized that today’s world is not solely dominated by the United States and China, but also includes other important economic powers such as Japan, South Korea, ASEAN, Europe, and the Middle East, all of which seek to expand trade cooperation with Thailand.
From the private sector’s perspective, the challenges facing Thailand were also reflected. Dr. Pimnara Hirankasit, Head of Economic Research and Head of Research at Krungsri Bank, stated that the Thai economy in 2026 will be a year of stability amidst uncertainty from both internal and external factors.
Although the Thai economy is supported by the tourism sector, foreign investment, and some domestic demand, it still faces several significant risks and challenges, including:
1. Escalating global trade tensions, uncertainty surrounding US economic policy, and geopolitical risks.
2. The influx of Chinese goods into the Thai market, potentially accompanied by imports of U.S. goods under the trade agreement, will increase the risk of a twin influx , putting pressure on the production of several Thai product groups.
3. Weather variability, which will affect farmers’ income.
4. Structural problems such as high household debt and the declining competitiveness of certain industries.
And 5. Policy uncertainty and political risk in the country.
Krungsri Research forecasts that the Thai economy will grow by only 1.8% in 2026, a slowdown from the projected 2.1% growth in 2025, due to several key economic engines showing signs of slowing down, including exports, consumption, private investment, and government spending.
In a world of competition and geopolitical tensions, many countries are forced to adapt to survive, and 2026 marks another year in which the Thai economy faces challenges from all sides.
Therefore, Thailand must quickly adapt and develop all aspects before its economy lags behind other ASEAN countries.
Source: nbt next
