Thai private-sector representatives have cautioned that prolonged negotiations to form a new government after the February 8 election could inflict significant economic damage, estimating losses of up to ninety-five billion baht in gross domestic product if a government is not established within the next two to three months.

The Federation of Thai Industries and the Joint Private Sector Committee emphasised that investor confidence and business activity are sensitive to political clarity, and that a policy vacuum following the election risks slowing investment, delaying budget implementation and dragging on overall economic momentum.

Surveying three potential post-election scenarios, industry leaders said the most favourable outcome would be a decisive win or swift coalition formation within thirty days, which could reassure both local and foreign investors and underpin economic planning for the full four-year term ahead.

The second scenario — a coalition formed after brief negotiation — would also be acceptable provided that economic policy is coherent and disciplined.

By contrast, protracted talks stretching beyond sixty days were viewed as highly detrimental, immediately dampening investor sentiment and potentially stalling fiscal and stimulus measures required to support growth.

Business figures described the current moment as one in which clarity of leadership and direction is essential, noting that Thailand already faces external headwinds from a volatile global economy and regional competition.

Economists and industry officials have linked political stability directly to economic performance, asserting that even temporary uncertainty can ripple through capital markets, trade negotiations and private investment plans.

As a result, private-sector representatives are urging competing parties to prioritise timely government formation to minimise disruption to economic governance and avoid eroding confidence in Thailand’s growth prospects.