As manufacturing stalls and household debt nears 90% of GDP, Southeast Asia’s second-largest economy faces a structural crisis and political instability.
The era of Thailand as a high-growth “Economic Tiger” has come to an abrupt halt.
Once the envy of its neighbours, the country is increasingly being referred to as the “Sick Man of Asia,” as reported by the Financial Times.
The nation now finds itself grappling with a severe economic paralysis across its three primary pillars: consumption, manufacturing, and tourism.
A Decade of Decay
The transition from a regional powerhouse to a stagnant economy has occurred with alarming speed.
According to Burin Adulwattana, chief economist at Kasikorn Research Centre, the shift took place in just a decade.
Having peaked with 13% growth in 1988, the Thai economy has been trapped at a meagre 2% growth rate for the last five years.
Several structural “anchors” are dragging the nation down:
Demographic Collapse: Thailand’s population has shrunk for four consecutive years, with 2025 birth rates hitting a 75-year low.
Debt Distress: Household debt is now approaching 90% of GDP, the highest ratio in Asia, stifling domestic spending.
Eroding Edge: Thailand is rapidly losing its competitive advantage to more agile regional rivals.