Thai newspaper exposes country as ‘economic tiger’ to ‘sick man of Asia’

---

The era of Thailand being called ‘economic tiger’ is fast coming to an end. According to the Financial Times, the once-envious country is now being called ‘sick man of Asia’.


The Thai newspaper notes that Thailand is currently battling severe economic stagnation in three main pillars: domestic consumption, manufacturing and tourism.


The transformation from a regional economic powerhouse to a stagnant economy has occurred at an alarming pace. According to Burin Adulwattana, senior economist at the Kasikorn Research Center, this negative transformation has occurred in just a decade.


After peaking at 13% growth in 1988, the Thai economy has fallen into a trap of a meager 2% growth rate over the past five years.  Some of the factors that are dragging down Thailand’s economy are:


1. Demographic crisis: Thailand’s population has shrunk for four consecutive years, with the birth rate in 2025 falling to its lowest level in 75 years.


2. Debt crisis: Household debt has now ballooned to nearly 90% of GDP, the highest in Asia, and is severely constraining domestic spending.


3. Loss of competitive advantage: Thailand is rapidly losing its competitive edge, losing ground to more agile regional rivals.


Meanwhile, even tourism, usually the strongest engine of economic growth, is struggling. The number of foreign tourists to Thailand in 2025 fell to 32.9 million, a 7% drop from the previous year. The decline was driven by safety concerns and the growing appeal of other tourist destinations such as Japan and Vietnam.


 Published February 4, 2026

Source: The Nation (https://www.nationthailand.com/business/economy/40062077)


For the latest news, please follow us on

👉Facebook: សារស្