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Indonesia's economy is driven primarily by domestic demand, with private consumption accounting for 55.8 percent of gross domestic product (GDP) in the first quarter of 2026, supported by a large working-age population with a low average age. This consumption-led growth relies on middle-income households as a key source of purchasing power.

Business conditions should improve slightly in the retail rentals sector through 2022, though growth will be limited by the impact on consumer purchasing power of surging inflation and the rising cost of living. In addition, although the reopening of the country to foreign arrivals is helping the tourism sector to recover, at present this remains insufficient to have a major impact on retailers in areas that are dependent on tourist spending especially those in the downtown and tourist areas. Nevertheless, the situation will improve over 2023 and 2024 as economic recovery and a continuing rebound in tourism feeds into stronger private consumption, and progress on the build out of infrastructure helps to spur greater investment in new retail space.

In 2020 operating results of private hospitals have been under pressure from the COVID-19 epidemic, affecting purchasing power of Thai and foreign patients

Private hospital business is expected to enjoy average annual growth of 10-13% from 2019 to 2021. Business expansion will be underpinned by structural changes in Thai demographics, including the aging society, continuing urbanization, and the ongoing growth of the middle classes. In addition, increasing health-awareness trend globally with personal health and wellness will also help to support sectoral growth.

Updated the key Industry Indicator: Private Hospital in each industry.By Poonsuk Ninkitsaranont

Updated the key Industry Indicator: Private Hospital in each industry.By Poonsuk Ninkitsaranont

Rising inflation risks support further rate hikes by the Fed and BOJ. Thailand prepares additional stimulus as consumption may lose momentum.

U.S. slowing wage growth limits Fed rate hike risks. Thailand’s investment and stimulus bolster growth, but consumption may lose steam.

Currently, there are 38,512 medical facilities in Thailand, comprising 13,364 public hospitals, accounting for 34.7%