Thailand is experiencing a period of political instability and economic challenges. Prime Minister Paetongtarn Shinawatra is under pressure following the leak of a private phone conversation. This has led to the withdrawal of support from a key coalition partner.
The country's economy is also facing difficulties. The National Economic and Social Development Council (NESDC) has lowered its 2025 GDP growth forecast. This adjustment reflects the impact of global trade issues and weak domestic consumption.
U.S. trade tariffs, scheduled to resume in July 2025, are expected to worsen the economic situation. The Bank of Thailand has cut interest rates to support the economy. Investor confidence has also been affected, as seen by a decline in Thai equities.