Thailand’s newly formed government is confronting mounting pressure to reinvigorate an economy that has underperformed regional peers, as growth slows, household debt remains elevated and external demand faces uncertainty.

The administration has signalled that economic revitalisation will be its central priority, pledging a combination of short-term stimulus and longer-term structural reform.

Policy measures under consideration include targeted fiscal support for low-income households, accelerated public investment in infrastructure and digital transformation, and renewed efforts to attract foreign direct investment in high-value industries.

Thailand’s economic growth has been weighed down by subdued exports, uneven tourism recovery and fragile domestic consumption.

While visitor arrivals have rebounded significantly from pandemic lows, spending patterns have shifted and global demand remains sensitive to geopolitical tensions and trade frictions.

At the same time, household debt stands at historically high levels relative to gross domestic product, constraining consumer purchasing power.

The new government has indicated it will work closely with the Bank of Thailand to maintain macroeconomic stability while supporting expansion.

Officials have emphasised that fiscal discipline will be balanced with proactive policies aimed at restoring confidence among businesses and investors.

Plans to streamline regulations, promote advanced manufacturing and strengthen regional trade partnerships are expected to form part of the broader reform agenda.

Analysts note that Thailand retains strong fundamentals, including a diversified industrial base, strategic geographic position and established tourism sector.

However, delivering a sustained turnaround will require careful policy coordination, clarity of direction and the rebuilding of private sector confidence.

The months ahead are likely to prove decisive as the administration translates campaign commitments into concrete measures designed to lift growth, ease financial pressures on households and position Thailand for more resilient long-term expansion.