Thailand is set to hold general elections on February 8, 2026, amidst a challenging economic backdrop. The report by DBS Group Research, authored by Chua Han Teng, highlights that GDP growth is expected to slow to 1.6% in 2026, with inflation hovering in negative territory. The elections are anticipated to result in a multi-party coalition government, with cautious investor sentiment likely to persist until policy directions become clearer.
Elections impact on Thailand’s economy
“We expect cautious investor sentiment, dominated by heightened election uncertainty, to potentially last through 1H26 until government formation and policy direction become clearer.”
“We expect real GDP growth to slow 1.6% in 2026, from slightly above 2% in 2025.”
“In the event of a political deadlock following the elections, the budget process for FY2027 could be disrupted, significantly hindering fiscal disbursement and spending three to four quarters after the elections.”
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
Source: https://www.fxstreet.com/news/thailand-economic-outlook-ahead-of-elections-dbs-202602022033
