What Is Happening to Thai People? Economic Recession Causes Consumers to Stop Buying, Investing, and Planning for the Future

It would not be incorrect to say this is a dangerous sign of a "confidence crisis" that is eroding the financial decision-making of Thai households.

The latest Ipsos survey, "What Worries Thailand? H2 2025," based on approximately 500 respondents aged 20-74, revealed that nearly 4 in 10 Thais said they would prefer to be born in 1975 rather than today, as life was much easier then.

It also clearly reflects that worries about complex economic structural issues have shifted from abstract concerns to hesitation in spending and halting life planning, especially regarding high-value goods and services.

A dangerous signal: Thai people entering a mode of “financial hibernation”.

Many Thais are stopping or delaying major life plans due to fragile confidence.

• 52% are reluctant to make big purchases, feeling uncertain about buying high-priced items such as houses or cars (a 4% increase from last year).
• 40% feel uneasy about purchasing other household items (a 2% increase from last year).
• And 76% of Thais believe the country’s economy is in a “recession” (a 4% increase compared to last year).

This cautious spending stems from the belief that inflation may not return to normal levels, prompting consumers to plan their finances with extra care.

This aligns with the Thai Social Conditions Report for Q3 2025 by the National Economic and Social Development Council, which shows that auto loans have contracted for the seventh consecutive quarter, following declining personal car sales since 2023. Similarly, credit card and personal loans under regulation contracted by 2.6% and 0.2%, respectively.

Conversely, the ratio of non-performing loans (NPLs) to total loans has increased. Credit Bureau data for Q2 2025 revealed personal loans overdue more than 90 days amounted to about 1.24 trillion baht, growing 6.9% from the previous year.

“Personal loans and credit cards lack collateral and carry high default interest rates, while housing loans require monitoring due to a rise in foreclosures and auctions. The Department of Legal Execution recorded 67,641 foreclosed properties for sale, a 210% increase, totaling 120 billion baht,” the report stated.

Vanishing money and an uncertain future.

This insecurity is not limited to current spending but extends to long-term stability. The Ipsos survey also indicates Thai people lack confidence in their jobs and have stopped investing for the future.

• Over 4 in 10 (41%) feel less confident about the job security of themselves, their families, and close associates.
• Almost half (48%) are less confident in their ability to invest for the future, including retirement and their children’s education.

With diminishing confidence in their income, investment decisions for future wealth are naturally put on hold. This halt in investment is more than an economic statistic; it represents a stop to the life plans and long-term dreams of many Thais.

“Corruption and crime” — structural problems shaking public confidence.

Another significant point is that structural concerns topped the Ipsos survey in November 2025, with “financial and political corruption” ranking highest at 49% and “crime and violence” rising to fourth place at 27%, surpassing inflation fears.

This surge in worries reflects public expectations for system transparency and feelings of threat, especially from call center scams and fraudsters causing severe damage. This lack of transparency and security is a key factor undermining public confidence in the overall economic system.

Coupled with Thailand’s “real GDP” showing significant slowdown in Q3, expanding only 1.2%, clearly indicating weakness, SCB EIC predicts the Thai economy will enter a “technical recession” in the second half of 2025, with GDP growth expected below 1%.

The Financial Fear Loop.

It is evident that what is happening to the Thai economy now is not just a cyclical slowdown but being trapped in a “financial fear loop” that gradually undermines decision-making at all levels.

With unstable incomes, many workers are cautious about large expenditures. Home purchases, car acquisitions, and even future investments are being postponed. Meanwhile, businesses relying on domestic demand face declining sales, leading to slowed new investments, stagnant hiring, and some reducing costs by cutting staff or limiting employee income.

This cycle further destabilizes job security for Thai workers. As income uncertainty rises, spending fears multiply, becoming a brake that slows the economy even further.

At the household level, these fears are not just reflected in reduced consumption figures but penetrate deeply into people’s life plans—from decisions about starting families and property purchases to long-term saving and investing for retirement. When the entire nation chooses to “delay the future” simultaneously, the economy cannot move forward to its full potential.

This is a major test for the government and the business sector to urgently enhance transparency, stability, and security to restore Thai people's confidence in spending and life planning.

Sources: Ipsos Ltd., National Economic and Social Development Council, SCB EIC.

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