Thai Businesses React to Change of Government
- linguollc
- Aug 30
- 3 min read
Thailand’s business community is urging political parties to act quickly and form a government, warning that ongoing uncertainty could build up economic risks and choke recovery.
The Constitutional Court’s decision to disqualify Prime Minister Paetongtarn Shinawatra has already bumped up worries among investors, who fear that prolonged instability could push up costs, stall trade deals, and hurt tourism.
Business leaders say that without a permanent cabinet, key policies will not move forward. Many groups are trying to round up support for a new leader, stressing that Thailand needs someone able to put on credibility and leadership to restore confidence.
Economic experts caution that GDP growth in 2025 may only amount to 1.2–1.8%, the weakest in five years. Projections suggest growth could fall off sharply if delays drag on, though it may thin out less severely if a government is formed soon.
Some international investors, however, are not panicking. Japan’s JETRO noted that Japanese investments often average out over the long term, meaning short-term instability won’t shift their strategy much.
Analysts outline three possible scenarios: if a government is formed quickly, growth could level off near 1.8%. A three-to-four month delay would flatten out growth closer to 1.5%, while a delay of five months or more would force expectations to slim down to just 1.2%.
In the end, experts believe that only a stable government can balance out investor fears with long-term confidence, and that speed is critical to avoiding deeper economic strain.
Vocabulary List with Practice
build up – to increase gradually; accumulate
The political crisis could build up pressure on the Thai economy.
Practice: What problems often build up if they’re not solved quickly?
bump up – to raise or increase suddenly
The court ruling bumped up investor concerns overnight.
Practice: When was the last time your expenses were bumped up unexpectedly?
round up – to gather people or things together
Parties are trying to round up support to form a new cabinet.
Practice: Who usually helps to round up your family or friends for events?
push up – to cause something to increase
Uncertainty could push up borrowing costs for Thailand.
Practice: What factors can push up food prices?
put on something – to display or perform; sometimes to pretend
Leaders must put on strength and credibility to reassure investors.
Practice: Do you think politicians often put on confidence they don’t feel?
amount to – to add up to; to be equal to
GDP growth may only amount to 1.2–1.8% this year.
Practice: What does your weekly screen time usually amount to?
fall off – to decrease
Tourism numbers may fall off if the crisis drags on.
Practice: Have you noticed interest in any hobby falling off over time?
thin out – to become fewer or less crowded
Confidence may thin out slowly if a government is formed soon.
Practice: Where do crowds usually thin out in your city?
slim down – to reduce in size, scope, or amount
Growth projections have been slimmed down to just 1.2%.
Practice: Why do companies sometimes need to slim down their operations?
average out – to produce a typical figure after variation
Investments usually average out in the long term despite ups and downs.
Practice: How many hours do you think you average out sleeping per night?
level off – to stop rising or falling and remain steady
GDP may level off at around 1.8% if stability returns.
Practice: Have your study or work hours ever leveled off after a busy period?
flatten out – to stabilize after growth or decline
The economy could flatten out at 1.5% growth with moderate delays.
Practice: In which areas of life do your results usually flatten out after an initial surge?
balance out – to counteract or even things
A stable government is needed to balance out risks with confidence.
Practice: What habits help you balance out stress in your daily routine?
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