Thai Consumer Confidence Declines in April Due to Trade Tensions and Economic Worries

Consumer confidence in Thailand declined in April, reflecting growing public concern over economic uncertainty and external pressures. Economists suggest that unless decisive measures are taken to stabilize the economy, confidence levels may continue to waver in the coming months.

Key takeaways

• Thailand’s consumer confidence fell in April, signaling growing concern over economic uncertainty and stagnant purchasing power.
• Fears of steep U.S. tariffs and unresolved trade negotiations are weighing heavily on public sentiment and export prospects.
• With weakened spending and lowered growth forecasts, policymakers face mounting pressure to boost domestic demand amid global headwinds.

The University of the Thai Chamber of Commerce (UTCC) reported that its consumer confidence index dropped to 55.4, down from 56.7 in March. This marks a continued downward trend, underscoring stagnant purchasing power and weakened public sentiment.

Ongoing trade tensions and growing economic uncertainties have continued to weigh heavily on Thai consumers, leading to a further decline in confidence levels in April. Analysts suggest that concerns over global market instability and domestic economic challenges are driving this downward trend. Experts warn that unless significant measures are taken to address these issues, the outlook for consumer confidence may remain bleak in the coming months.

A moratorium currently limits U.S. tariffs to 10% for most countries, including Thailand. However, if a new agreement is not reached by July, Thai exports could be hit with a steep 36% tariff. Such a development would have significant implications for the country’s export-driven economy.

Consumers are showing increased hesitation in making large financial commitments, with spending on durable goods, real estate, automobiles, and travel being notably subdued. 

This cautious approach suggests that economic confidence remains fragile and that many households are prioritizing savings over discretionary spending.

The potential for higher U.S. tariffs has also raised alarms about its broader impact on the national economy. If the current 10% tariff remains in place for most countries, Thailand’s GDP growth could be reduced by as much as one percentage point this year, according to UTCC projections.

The International Monetary Fund (IMF) has revised Thailand’s economic growth forecast for 2025 downward to 1.8%, lowering it from an earlier projection of over 2%. The downward revision reflects concerns over slower-than-expected recovery in key sectors, including tourism and exports

In addition to trade-related pressures, Thailand is facing the effects of a global economic slowdown. Earlier this month, the Finance Ministry revised its 2025 economic growth forecast downward from 3% to 2.1%, citing external factors such as declining global demand and the uncertain trade environment. The economy grew by 2.5% last year, trailing behind many of its regional peers in Southeast Asia.

With consumer confidence slipping and key external risks looming, Thailand’s economic outlook remains cautious.

Policymakers are likely to face increased pressure to introduce measures that support domestic consumption and mitigate the impact of global trade dynamics in the coming months.

Last week the Thai government has decided to cancel its planned 10,000-baht digital wallet handout, originally intended for 2.7 million young people aged 16–20, and redirect over 150 billion baht toward a new economic stimulus plan.