Thailand, March 31st, 2025 — Kasikorn Research Center reported that the March 28 earthquake could cause economic losses exceeding 20 billion baht, mainly due to disruptions in services, events, transportation, and retail sectors.
Businesses and households are expected to shift spending toward damage assessments and repairs, impacting consumer demand.
The real estate sector faces challenges, with condominium sales and transfers in Bangkok likely to slow down, while demand for rental properties may rise. The tourism industry is also at risk, as foreign visitor confidence declines, especially with Bangkok’s high-rise hotels affected.
Preliminary estimates suggest the earthquake could lower Thailand’s 2025 GDP growth by 0.06% from the projected 2.4%. Additional risks, including potential U.S. import tariffs, could further reduce GDP by 0.3%. The Bank of Thailand may accelerate interest rate cuts, possibly as early as April, to mitigate economic fallout.
The insurance sector is expected to manage the impact due to reinsurance mechanisms, while banks face increasing pressure on credit growth and non-performing loans. Kasikorn Research warns that economic uncertainties and high household debt will weigh on Thailand’s financial stability throughout 2025.
This article originally appeared on our sister website The Pattaya News.
