Weak economy could hamper prospects for crypto

While the crypto trading industry expects a bright outlook in 2026, thanks to improved regulatory clarity and growing institutional investors, Binance TH expressed concerns over the stagnant economy that could affect nationwide adoption.

- NAREERAT WIRIYAPONG

Nirun Fuwattananukul, chief executive of Binance TH by Gulf Binance, said the Thai economy is expected to expand at a low rate, facing significant headwinds from external trade policies and internal structural issues.

"The outlook for the Thai economy in 2026 is fragile and decelerating with a high degree of uncertainty," he told the Bangkok Post.

In Mr Nirun's view, the economy will be caught in a pincer movement of Trump's tariff shock hitting exports and an internal credit crunch where high household debt limits consumption and banks tighten lending standards.

The country's key challenges for 2026 include a slowing global economy and rising protectionism, which will dampen external demand, he said. Indirect effects from US-China trade tensions could disrupt supply chains for intermediate goods, Mr Nirun added.

A lower interest rate environment signals a state of "economic stagnation rather than healthy stability", he said.

Domestic political uncertainty preand post-election will likely delay budget disbursements and affect investor confidence, said Mr Nirun.