Thai Consumer Confidence Hits 27-Month Low Amid US Tariff Concerns

Thailand's consumer confidence index has declined for the fourth consecutive month, reaching its lowest point in 27 months amid concerns over potential U.S. tariffs and a sluggish economic recovery. The index fell to 54.2 in May from 55.4 in April, reflecting growing public anxiety about trade tensions under President Donald Trump's administration and Thailand’s slow growth prospects. The looming expiration of the U.S. tariff moratorium in July threatens to impose a 36% tariff on Thai exports, which could reduce GDP growth and cause a contraction if negotiations fail. Economic forecasts have been downgraded, with growth expected between 1.3% and 2.3% this year, and potential economic damage from lost exports and tourism revenues estimated at up to 200 billion baht. Despite government stimulus efforts and interest rate cuts, consumer sentiment remains pessimistic, with key indicators such as employment and income confidence also declining. Experts urge swift government action to promote tourism and deploy stimulus funds to mitigate the economic fallout.