Market sentiment lifted quickly in Thailand as results from Sunday’s elections started streaming in, consolidating the positive index rates on Monday.
Asia’s second largest economy saw a surging index in the stock market, and global investors as well as manufacturers celebrated the fact that the policy direction is likely to continue as caretaker prime minister Anutin Charnvirakul’s Bhumjaithai Party won the majority with approximately 193 seats out of 500 in the House of Representatives. The People’s Party won 116 seats, and the Pheu Thai party approximately 74.
The election had a dual mandate, with the party election as well as a simultaneous referendum to approve a process for a new constitution approved by 60 percent voters.
“This election is about whether Thailand will get out of its rut, whether Thailand will break out of its political instability and economic doldrums that have persisted,” said political scientist Thitinan Pongsudhirak.
Other analysts noted that the election was not so much about having a new party in power, but rather about ensuring continuity of policies, and improving the economic landscape. While GDP growth in 2025 was approximately 2.2 percent, pre-election forecasts for 2026 GDP have hovered below the 2 percent mark.
“For the first time in a long time, we will likely have a government that has sufficient effective power to govern,” Bangkok-based economist and analyst Napon Jatusripitak observed, even though it is clear that a coalition government will be needed to get the 251 seats required to form the government.
Given that there have been three prime ministers in three years, with a series of strategic resignations and coalition governments, manufacturers and trade bodies said that their biggest hope was a continuity of measures. The last prime minister, Paetongtarn Shinawatra—daughter of former prime minister Thaksin Shinawatra and a leader within Pheu Thai—was nominated and approved as Thailand’s new prime minister in mid‑August 2024, becoming one of the youngest leaders in the country’s history. However, she was removed from office by the Constitutional Court in August 2025.
“We’ve had a turbulent year, with unexpected tariffs and uncertainty about our competitive position against neighboring countries,” said a Bangkok-area apparel manufacturer. “Thailand’s currency appreciated nearly 9 percent in 2025 before easing slightly in early 2026. While imports became cheaper, our price competitiveness suffered. We need support to boost productivity and diversify markets.”
According to industry sources, Thailand’s fashion and garment industry remains a significant pillar of the economy, with total turnover in 2025 estimated at roughly 690 billion baht ($19.7 billion). Domestic retail sales, including clothing, accessories, and other fashion-related products, accounted for around 340 billion baht ($10 billion), while exports of textiles and garments contributed roughly 350 billion baht ($11.2 billion), reaching markets in the European Union, the United States, Japan, and across ASEAN.
Yet business leaders told Sourcing Journal that there were still other milestones to be met as election results needed to be officially certified by the Election Commission, a speaker elected by parliament, the prime minister formally selected and the new cabinet sworn in. The expectation is that this will happen in the next two months, and until then the caretaker government will continue to operate.
Meanwhile, elections in neighboring Myanmar were completed at the end of January, and how the new governance there will affect Thailand is yet to be seen. There are already more than 3 million migrants from Myanmar in Thailand (though unofficial figures estimate double this number). In recent months, as China has been re-routing its exports in the region as a result of U.S. tariffs, analysts said that Thailand’s economic calculations will also need to be reshaped as Myanmar’s post-election government determines its foreign policy orientation.
Still, many business heads are upbeat, foreseeing a sense of continuity and a measure of economic reassurance and certainty ahead.