Thailand has recorded a sharp rise in business closures in early 2025, with nearly 3,921 companies ceasing operations in the first four months—an 8.3% increase from the same period last year. The most affected industries include general construction, real estate, and restaurants, according to the Department of Business Development. Total registered capital lost in these closures reached nearly 16 billion baht, underscoring the severity of the downturn.

Analysts attribute the surge in closures to a combination of weak domestic consumption, soaring household debt, and ongoing trade uncertainties. Bank of Thailand officials have repeatedly cited high household liabilities and sluggish spending as significant drags on economic performance. Deputy Governor Roong Mallikamas described the economy as contending with “structural problems” amplified by potential threats of steep U.S. tariffs—issues reflected in the rising number of shuttered businesses.

Adding to domestic strains, Thailand faces increasing pressure from its largest export market, the United States. Washington has threatened tariffs of up to 36% on Thai exports if bilateral trade negotiations fail by early August. In response, the government has submitted a revised trade proposal and prepared a 1.2-billion-dollar fiscal package aimed at mitigating the impact of any tariff escalation.

While Thailand’s central bank has held interest rates steady at a two-year low and retained an accommodative stance, officials caution that monetary policy alone may not be sufficient. They have urged coordinated fiscal and structural reforms to support businesses and foster recovery.

With economic growth forecast to slow to around 2.3% in 2025 and risks of contracting further, the rising wave of business closures presents a critical test for policymakers navigating external shocks and domestic vulnerabilities.

References

Reuters, “Thailand has submitted latest trade proposal to United States, finance minister says” (July 7, 2025).
Reuters, “Thai central bank sees economy slowing in second half as tariffs hit exports” (July 9, 2025).
Reuters, “Thailand preparing $1.2 billion in measures to address US tariff impact” (July 9, 2025).
Reuters, “Thai monetary policy must stay flexible as headwinds build, central bank deputy says” (July 2, 2025).