BANGKOK, THAILAND – A stark assessment by the Financial Times triggered an unusually open economic debate in Thailand, pitting former premier Srettha Thavisin against new Prime Minister Anutin Charnvirakul over how to fix a slowing economy.
London critique ignites Bangkok policy clash
A 4 February analysis in the Financial Times described structural weaknesses, prolonged stagnation and a lack of clear economic direction, branding Thailand the “sick man of Asia“. The article set out proposals to revive growth and competitiveness and struck a nerve in Bangkok, where senior politicians quickly took public positions.
Srettha’s debt-focused “major reset”
In a 11 February letter to the newspaper, former prime minister Srettha Thavisin acknowledged economic strains but argued that the London diagnosis and proposed cure were incomplete. He put private indebtedness and weak consumption at the centre of his response, calling for a “major reset” in which special-purpose vehicles would take over non-performing loans to restore household liquidity and stimulate domestic demand.
Ageing society and slowing growth
The Financial Times analysis highlighted that Thailand was already classed as an aged society, with over 20 percent of the population currently older than 60 and the share expected to reach 30 percent by 2033. At the same time, the population had been shrinking for four years, the birth rate in 2025 fell to a 75-year low, and economic growth averaged about 2 percent over the past five years, far from the 13 percent recorded in 1988.
Industry strains, car plant closures and export pressure
The structural shift hit industry particularly hard, as competitiveness eroded under weak domestic demand, cheaper imports from China and the rise of new manufacturing locations such as Vietnam. In the automotive sector, long a regional engine, manufacturers including Nissan, Honda and Suzuki closed or scaled back plants, weighing on output, domestic sales and factory utilisation.
Everyday pressure: voices from Bangkok
High debts, stagnant wages and cautious banks further depressed consumption, prompting many people to cut spending and slowing already subdued momentum. This was visible in small retail businesses, where restaurateur Tipvimol Wanitthaphan, 57, gave up her office-worker restaurant in Bangkok after revenues fell by two thirds, while salon owner Tewanaree Sawangnate reported fewer customers and reduced private spending.
Infrastructure, digital push and investment battle
In his letter, Srettha also outlined an infrastructure and digital strategy, from a north–south rail line and a land bridge between the Andaman Sea and the Gulf of Thailand to a “Go Cloud First” approach to attract data centres and semiconductor investment. He urged modernised regulation, direct power purchase agreements for foreign investors and the removal of certain ESG hurdles for major technology companies to boost productivity in the AI era and shift tourism from volume to higher value creation.
Political rupture and Anutin’s rebuttal
Srettha’s plans remained programmatic after the Constitutional Court disqualified him from office on 14 August 2024 under the 2017 constitution, continuing a long tradition of frequent government changes and upheavals. New prime minister Anutin Charnvirakul, who won the contested 8 February 2026 election, rejected the “sick man of Asia” label at Government House on 12 February, saying it reflected only the performance of the previous administration.
Fiscal discipline and business fears of recession
Anutin stressed to journalists the importance of credibility with international observers and pointed to swift budget releases to clear farmers’ debts at the state agricultural bank as evidence of responsible fiscal policy. At the same time, industry representatives warned of recession risks amid 19 percent US tariffs and a stronger baht, which undermined the export capacity of traditional sectors and strengthened calls for deep modernisation.
Long-term task: ageing population and weak demand
Economists urged relaxed restrictions on foreign investment and upgraded infrastructure to develop new growth fields such as data centres, high-value manufacturing, pharmaceuticals and biotechnology. In the short term, however, high household debts, cautious banks and an ageing, shrinking population continued to weigh on domestic demand, leaving economic management under constant scrutiny and the political response to the data increasingly debated in public.