BANGKOK, Thailand – Since January 2025, the Stock Exchange of Thailand (SET) has experienced a significant downturn, with the SET Index declining by approximately 15.4% year-to-date.
As of February 28, 2025, the SET Index closed at 1,192.43 points, reflecting ongoing challenges in the Thai equity market.
Several factors have contributed to this decline. The Bank of Thailand’s recent decision to cut the policy interest rate by 25 basis points to 2.00% aims to stimulate economic activity amid slow growth and global trade uncertainties.
Additionally, the manufacturing sector reported a 0.85% year-on-year decrease in the Manufacturing Production Index (MPI) for January, marking the sixth consecutive month of contraction, though the decline was less severe than anticipated.
Investor confidence has been further undermined by political instability. The recent ousting of the Thai prime minister has raised concerns about the country’s economic recovery and future policy direction. While the swift appointment of a new leader provided some reassurance, uncertainties persist regarding long-term economic plans and structural reforms.
Despite these challenges, there are optimistic projections for Thailand’s economic growth. The World Bank anticipates that the economy will gain momentum in 2025, driven by stronger domestic demand and fiscal stimulus measures, with growth projected to accelerate to 2.9% from 2.6% in 2024.
Tourism is also expected to return to pre-pandemic levels by mid-2025, potentially boosting investor sentiment.
While the Thai stock market has faced significant declines and investor confidence has been shaken due to economic and political factors, upcoming fiscal measures and resurgence in tourism may help restore confidence in the Thai economy and its investment landscape.
