Thailand's Economy Grows 1.9 Pct In 2Q 2026
BANGKOK, Aug 17 (Bernama) -- Thailand’s economy grew 1.9 per cent year-on-year (y-o-y) in the second quarter of 2026 (2Q 2026), slowing from 2.8 per cent growth in 1Q 2026, according to the National Economic and Social Development Council (NESDC) report on Monday.
According to the report, total investment remained a major source of growth, expanding 9.1 per cent, with private investment rising 13.4 per cent, driven by spending on machinery, equipment and vehicles.
Public investment, however, contracted 1.6 per cent.
NESDC said the value of goods imports surged 42.3 per cent, while import volume increased 27.7 per cent, pushing the current account into a deficit equivalent to 12 per cent of gross domestic product (GDP) during the quarter.
In the report, NESDC revised the 1Q GDP growth to 2.8 per cent y-o-y and 0.6 per cent quarter-on-quarter.
For the full year, the council forecasts the economy to grow by 2.0-2.5 per cent, with a midpoint forecast of 2.2 per cent, compared with its previous projection of 1.5-2.5 per cent.
NESDC said tourism continued to expand during the quarter, generating total revenue of 663 billion Baht (100 Baht = RM12.30), up 6.3 per cent from the previous quarter, adding that Thailand recorded 6.55 million international tourist arrivals in 2Q 2026.
It said economic growth in 2026 would be supported by continued strong private investment, household consumption, goods exports, as well as momentum from government spending and public investment.
Meanwhile, Deputy Prime Minister and Finance Minister, Ekniti Nitithanprapas said 2Q 2026 GDP figures reflected an economy undergoing stabilisation and transition, with strong private investment and technology exports helping to drive the New Economy.
He said the figure was close to the Finance Ministry’s previous estimate and confirmed the outlook anticipated by the economic team, particularly the impact of the conflict in the Middle East, which began in late March and affected the economy in waves during the quarter.
“The impact began with the oil crisis before spreading to the cost of goods and living expenses, as reflected in 2Q 2026 inflation, which rose to 2.7 per cent from minus 0.5 per cent in 1Q 2026. This caused private consumption growth to slow to 1.9 per cent from 3.3 per cent previously,” he said.
Although 2Q 2026 GDP growth was still not satisfactory, Ekniti said the figures showed that the government’s economic forecasts and measures to support the economy were on the right track.
“The Thai economy is now in a period of ‘stabilising as it moves towards transition’, with the aim of returning to its full growth potential in the longer term,” he said.
-- BERNAMA