Thailand and China face deepening economic and demographic challenges

Thailand is facing multiple socio-economic challenges, including a demographic crisis and shifting industrial policies. The national fertility rate has dropped to 1.08, signaling a transition toward a super-aged society. This trend is complicated by a high rate of unintended adolescent pregnancies, with an average of 115 births occurring daily among teenagers due to inadequate sex education and social stigma.

Economically, the government is attempting to bolster confidence and industry. The Excise Department is moving to reclaim electric vehicle (EV) subsidies from foreign importers that have failed to meet domestic production requirements. Companies failing to meet these targets face full refunds of subsidies plus a 7.5% annual interest rate. Meanwhile, experts warn that GDP growth alone may not restore consumer confidence if the benefits do not reach the working class.

In the region, China continues to struggle with a deepening economic crisis. The People’s Bank of China has maintained benchmark lending rates for 16 consecutive months despite a property market crash and weak consumer spending. Policymakers remain cautious, balancing the need for stimulus against the risks of capital flight and currency devaluation.