Bangkok: Thanawat Phonwichai, President of the University of the Thai Chamber of Commerce and Advisor to the University of the Thai Chamber of Commerce's Center for Economic and Business Forecasting, has expressed optimism about the Thai economy's trajectory in the upcoming fourth quarter. He conveyed that the economy should be able to advance following the establishment of a new government, forecasting a GDP growth of 2% in 2025.

According to Thai News Agency, Thanawat addressed the implications of the Constitutional Court's decision to remove the Prime Minister from office. He noted that despite this change, the House of Representatives remains intact, and the 2026 budget has been approved. The Acting Prime Minister, Phumtham Wechayachai, is set to implement the 157 billion baht economic stimulus budget in the third quarter. However, uncertainty looms over which political party the new Prime Minister will represent, whether it will be a continuation of the old coalition or a new one, and the subsequent stability of the government.

Thanawat anticipates the appointment of a new Prime Minister and Cabinet within two to three months, which will usher in the new government. The Thai economy is expected to gain momentum in the fourth quarter of this year. He highlighted that the timing of budget disbursements could be affected by the policy statement presented to Parliament. Nonetheless, GDP growth in 2026 is projected to be around 2%.