Bangkok: The Joint Standing Committee on Commerce, Industry, and Banking (JSCCIB) has expressed concerns that Thailand's GDP growth in 2026 could fall below 2% due to delays in the 2027 budget, which could negatively impact investment.
According to Thai News Agency, the JSCCIB is apprehensive about Thailand being labeled as "The Sick Man of ASEAN," likening the nation to a patient with recurring illnesses. They stress the importance of appointing a competent and knowledgeable cabinet to address the country's chronically ailing economic structure, warning that failure to do so could lead to Thailand being perceived as the "Death Man" of ASEAN, potentially resulting in a credit rating downgrade.
Mr. Kriengkrai Thianukul, President of the Federation of Thai Industries (FTI), highlighted additional challenges such as geopolitical factors and uncertainties stemming from US tariffs as primary risks to the global economy in 2026. The World Economic Forum's Global Risks Report has identified geoeconomics as the leading global risk, which has intensified compared to previous years. Geopolitical events have contributed to financial market volatility, affecting currency exchange rates and gold prices. In 2026, goods worth at least US$10 billion, representing 63% of Thailand's total exports to the US in 2025, are subjected to additional import tariffs, with semiconductors showing notable growth.
The JSCCIB's concerns also extend to the Thai economy's projected growth rate of below 2% in 2026, compounded by possible delays in the 2027 budget. The Fiscal Policy Office (FPO) has predicted a decline in government spending, particularly in investment, compared to the previous year. As of January 31, 2026, data from the Comptroller General's Department indicates that only 176,655 million baht, or 21.57%, of the investment budget has been disbursed, falling short of the 26% target, reflecting delays in government investment projects.
Mr. Kriengkrai emphasized the need for a cabinet comprised of knowledgeable and capable individuals, particularly in the economic ministries, rather than appointments based on political party quotas. He acknowledged the foreign media's portrayal of Thailand as "The Sick Man of ASEAN," admitting the country's economic inconsistencies. He advocated for expert-driven solutions to revitalize Thailand's economy and avoid further decline.
Mr. Kriengkrai also expressed hopes that government formation would proceed without further delay to prevent additional setbacks in the 2027 budget. He cautioned that prolonged political instability could deter investment, risking Thailand's economic standing in ASEAN.
Dr. Poj Aramwattananon, Chairman of the Thai Chamber of Commerce and the Federation of Thai Chambers of Commerce, underscored the need for a rigorous selection process for ministers based on expertise. He called for prompt resolution of existing issues, such as amending ministerial regulations that hinder business growth, to prevent economic contraction.
Payong Srivanich, President of the Thai Bankers Association, emphasized the necessity of linking short-term economic stimulus to medium and long-term plans to ensure sustainable growth. He warned that failing to address competitiveness and regulatory issues could lead to repeated economic challenges and a potential credit rating downgrade for Thailand.
The JSCCIB maintains its 2026 economic forecast for Thailand, projecting GDP growth of 1.6-2.0%, exports of -1.5% to -0.5%, and inflation of 0.2-0.7%.