On 5 September 2025, Thailand appointed a new prime minister. The Thai House of Representatives voted with 311 votes (out of 492 active members in the Parliament) to endorse Anutin Charnvirakul, leader of the Bhumjaithai Party, as the country’s 32nd prime minister, and the third to do so in the last two years, with his royal appointment following on 7 September 2025. Anutin, who secured a decisive parliamentary victory, will serve only a four-month term before calling an election, under the agreement made with the People’s Party, the largest party that supported his bid for prime minister.
Under current plans, Bhumjaithai, which holds 69 seats in the Parliament, commands 12 ministerial portfolios, with Anutin doubling as both Prime Minister and Interior Minister. The allocation of other cabinet seats reflects a complex coalition: Kla Tham Party is expected to get seven posts. Palang Pracharath Party received four ministries. United Thai Nation Party, with 16 MPs led by Suchart Chomklin, secures three seats—Suchart as Deputy PM and environment chief, Yotsingh Liamlert for Industry, and Thanakorn Wangboonkongchana as Deputy Interior Minister. Smaller party and faction quotas go to the Sakda Wichiansilp and Niphon Bunyamanee groups, the latter with Nithiya Bunyamanee expected to fill a deputy role due to legal disqualification of the original candidate.
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The appointment of the new prime minister followed the dismissal of the previous leader by the constitutional court. Thailand’s Constitutional Court on August 29, 2025, dismissed Prime Minister Paetongtarn Shinawatra over an ethics violation connected to a leaked phone call with Cambodia’s Senate President, Hun Sen. In the leaked call, she had referred to Hun Sen as “uncle,” and appeared to favor Cambodia’s position, while criticizing a Thai military commander— raising serious questions over her judgment and national loyalty. The leak intensified political turmoil, triggering the withdrawal of coalition support and ultimately ending her premiership after just a year in office. The crisis led to the Bhumjaithai Party stepping forward to form a new government coalition with the main opposition People’s Party. This coalition, under Bhumjaithai leader Anutin Charnvirakul, has agreed to a short-term administration focused on addressing pressing national issues while committing to constitutional reform and paving the way for new elections within four months. Key conditions include dissolving the House of Representatives, holding a referendum for constitutional amendments, and maintaining the People’s Party in opposition for oversight, reflecting both efforts for political stability and public demands for reform amidst continued protests. A year earlier, on 15 August 2024, Thailand’s Constitutional Court had ousted previous Prime Minister Srettha Thavisin, who had assumed the position in August 2023, citing charges of reigniting political instability and violating ethical standards by appointing a Cabinet minister with a criminal record.
Prime Minister Anutin Charnvirakul, officially appointed on September 7, 2025, has outlined four urgent priorities for his administration. These include easing economic burdens by cutting energy and transport costs, supporting farmers and low-income groups, and promoting grassroots income generation. On national security, he emphasised resolving the Thai–Cambodian border dispute peacefully while ensuring fair compensation for affected citizens. He also pledged to strengthen disaster preparedness with better early warning systems and faster, more transparent relief measures. In addition, his government will intensify efforts to combat narcotics, human trafficking, fraud, illegal gambling, and online crime through stronger domestic action and regional cooperation. Thailand faces high electricity tariffs averaging about Bt4.18 ($0.117) per unit, which have drawn criticism regarding their impact on investment competitiveness.
In a boost to the economy, on 8 September 2025, the Thai Finance Ministry confirmed its readiness to relaunch the “half-half” co-payment scheme, aiming to stimulate consumer spending and ease household expenses under the new Anutin-led government. The Finance Ministry revealed that it would restart the co-payment scheme as early as October 2025, pending approval from the new government led by Prime Minister Anutin Charnvirakul of the Bhumjaithai Party. Furthermore, both the budget—Bt25bn ($700.3m) from the fiscal year 2026 stimulus allocation—and the system infrastructure are already in place, enabling the scheme to be relaunched within 30 to 45 days of approval. This program aims to boost consumer spending, reduce living costs, and support local businesses.
However, political instability in Thailand, marked by the court’s verdict removing the former Prime Minister, threatens to disrupt government spending and economic recovery plans. A hastily formed or short-lived government may face difficulty in implementing key policies, risking delays in budget disbursement and a potential credit rating downgrade. In early September 2025, Thailand’s Senate approved a Bt3.78trn ($105.9bn) Budget with an increase of 0.7% in spending compared to last year’s Budget. The budget also targets a budget deficit of 4.6% of GDP for 2026, totalling Bt860bn ($24.1bn). Although the 2026 budget has been approved, delays in full government formation could stall economic stimulus efforts amid signs of slowing consumption, investment, tourism, and trade. Market volatility is expected in the short term as investors await political clarity. Spending must remain consistent with medium-term fiscal discipline. If substantial funds are directed to short-term programs, corresponding plans to increase revenue, such as tax adjustments, are necessary to protect the country’s creditworthiness. In summary, Thailand currently faces an economic slowdown, potential credit downgrade, and challenges in the tourism sector. However, these risks can be mitigated through structural reform, fiscal discipline, and improved planning.
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By GlobalDataAs evident, in mid-August 2025, Thailand’s National Economic and Social Development Council (NESDC) revealed that it is set to revise its 2025 GDP growth forecast in response to the US confirmation of a 19% tariff on Thai exports. Despite economic growth in the second quarter, driven by strong exports, with shipments to the US accelerating before the tariff hike, uncertainty from US trade measures has led to adjustments in projections. Earlier forecasts lowered growth from 2.8% to around 1.8%, with the upcoming revision likely to keep the range but adjust assumptions closer to 2%. The Bank of Thailand (BoT) raised its growth projection to 2.3%, up from about 2% in April 2025. However, the bank warned that growth could slow to just 1.3% if trade negotiations with the US break down. Earlier in May 2025, the International Monetary Fund (IMF) reduced the country’s 2025 growth rate from 2% to 1.8%.
