Thailand’s household spending is projected to grow by 4.0% in 2025, bolstered by easing inflation and a stable labor market, despite political instability impacting consumer confidence and retail sales.
Thailand’s Household Spending Growth in 2025
Thailand is poised for a 4.0% growth in household spending in 2025, aided by easing inflation and a stable labor market. However, political instability continues to challenge consumer confidence and retail sales. Overall, while the outlook remains positive, the economy’s uncertainty affects how consumers are likely to spend.
Consumer Spending Projections
We expect continued growth in Thailand’s consumer spending, particularly in retail, hospitality, and tourism sectors, with total spending projected to surpass THB9.6 trillion in 2025. The improvement stems from a stabilizing economy post-COVID-19, despite previous periods of volatility. Additionally, the Bank of Thailand’s potential rate easements should support ongoing spending trends.
Challenges and Long-term Outlook
Despite a solid medium-term consumption outlook bolstered by government stimulus and tourism recovery, political turmoil remains a significant issue. Recent protests and election uncertainties may dampen confidence, impacting consumer habits. Addressing these political challenges will be vital for maintaining a positive economic trajectory in the years ahead.
Source : Thailand’s Consumer Outlook: Stable Medium-Term Prospects Despite Short-Term Political Challenges
