Thailand In 2024: Political Transition, Economic Hurdles, And Regional Diplomacy

BANGKOK, Dec 21 (Bernama) -- Thailand, in 2024, navigated a year marked by political transition, economic challenges, and a renewed focus on regional diplomacy. From hosting key ASEAN engagements to tackling pressing domestic issues, the Kingdom strived to balance its national interests with international priorities.

This year marked a significant political milestone with the leadership transition within the Pheu Thai Party, following its historic coalition government formation in late 2023.

Backed by the ruling party, Paetongtarn Shinawatra, the daughter of former Prime Minister Thaksin Shinawatra, was nominated to succeed Srettha Thavisin following his removal from office by the Constitutional Court on August 14, to become Thailand's youngest prime minister at 38.

She inherited a deeply divided political landscape and the pressing challenge of uniting the nation after years of polarised politics.

Her administration focused on economic reforms, social welfare, and fostering national unity. Key initiatives included the extension of cash handouts under the "Digital Wallet Scheme" and the launch of rural development programmes.

In her nationally televised address marking the first 90 days of her administration, Paetongtarn unveiled her ambitious “2025 Empowering Thais: A Real Possibility” campaign. She pledged to empower citizens, decentralise authority, and build a nation rooted in dignity and prosperity.

“Our mission is to create a nation where everyone has the opportunity to thrive with dignity. Together, we will make 2025 a year of progress and hope, laying the foundation for a brighter decade ahead,” she said.

Thailand’s economy in 2024 showed mixed signals as the country recovered from the COVID-19 pandemic. The tourism sector, contributing about 20 per cent of GDP, rebounded strongly with the return of Chinese tourists and the growth of eco-tourism.

However, sluggish global trade and high inflation weighed on exports and domestic consumption. Household debt reached a record 90 per cent of GDP, prompting the government to introduce debt restructuring measures and provide support for small businesses.

As one of Southeast Asia's most climate-vulnerable nations, Thailand faced recurring natural disasters. Severe flooding in September devastated northern and northeastern provinces, resulting in 52 fatalities and affecting approximately 34,000 households.

In November, floods across 11 southern provinces displaced thousands and caused significant economic losses, further underscoring the country’s need for climate resilience.

On the international stage, Thailand solidified its role as a key player in ASEAN. In October, it hosted informal talks on Myanmar’s crisis, bringing together ASEAN member states and neighbouring countries including China and India.

Although implementing the Five-Point Consensus (5PC) on Myanmar remained challenging, Thailand’s facilitation of dialogue highlighted its diplomatic ambition in mediating regional conflicts.

Additionally, Thailand pushed for deeper economic integration through the Regional Comprehensive Economic Partnership (RCEP) and strengthened bilateral ties with major partners like Japan and South Korea.

Hosting APEC-related meetings further highlighted Thailand’s commitment to advancing digital trade and sustainable development.

As 2024 comes to an end, Thailand faces critical challenges in navigating an increasingly fragmented global landscape. Domestically, it must address economic vulnerabilities, enhance climate resilience, and foster democratic reforms while ensuring stability and growth.

With its strategic location and growing diplomatic influence, Thailand is poised to play a pivotal role in ASEAN and beyond. The road ahead lies in transforming its aspirations for unity, prosperity, and sustainability into meaningful outcomes for all its people.

-- BERNAMA