PATTAYA, Thailand – According to Pornchai Theerawet, Director of the Fiscal Policy Office, Thailand’s economy in June 2025 showed a mixed picture. While export growth continued strongly for the 12th straight month, supported mainly by electronic components, computers, fresh fruits, and processed food products, private consumption and investment signals have softened.
Domestic demand cooled as registrations of new motorcycles and passenger cars increased compared to last year but fell compared to the previous month after seasonal adjustments. Real farmer incomes dropped by 6.2%, and consumer confidence declined to 52.7 from 54.2, influenced by slow economic recovery and geopolitical tensions near the Thai-Cambodian border.
Investment in machinery imports rose 32% year-on-year but decreased 4.9% month-on-month, reflecting cautious business sentiment. Meanwhile, commercial vehicle registrations dropped 7.6% compared to last year, and domestic cement sales declined slightly, signaling subdued construction activity.
The tourism sector, vital for coastal cities such as Pattaya, faced challenges. Foreign tourist arrivals fell 15.2% year-on-year to 2.32 million in June. The border conflicts have shaken traveler confidence, impacting Pattaya’s international visitor numbers. However, domestic tourism remains a bright spot, with 21.7 million Thai tourists recorded, up 2.8% year-on-year, providing some support to local economies.
Agricultural output showed mixed results, with increased production in key crops like corn and fruits but declines in cassava and palm oil. Industrial confidence dropped slightly, pressured by geopolitical uncertainties and global trade tensions, although the purchasing managers’ index (PMI) improved, supported by increased export orders.
Thailand’s financial markets saw signs of recovery. Domestic investors remain confident in the stock market despite some short-term profit-taking. Foreign investors returned in July with net purchases, indicating improved sentiment. The bond market experienced continued selling but remains underpinned by confidence in government securities as a safe haven amid global volatility.
For Pattaya, these mixed economic signals mean ongoing challenges in attracting foreign tourists amid border tensions, though steady domestic tourism helps cushion the impact. Continued government support and improving global conditions are crucial for Pattaya’s recovery.
