Thai GDP Growth Weakens In Q2

(RTTNews) - Thailand's economy logged a slower growth in the second quarter on softer consumption and tourism related activities but the outlook for the year was upgraded citing strong investment, spending and exports.

Gross domestic product grew 1.9 percent from the previous year, which was slower than the 2.8 percent expansion posted in the first quarter, the National Economic and Social Development Council reported Monday.

On a quarterly basis, GDP contracted 0.2 percent, in contrast to the 0.6 percent growth posted in the first quarter.

For the first half of 2026, the Thai economy grew 2.4 percent. The government forecast economic growth in the range of 2.0 percent to 2.5 percent this year, up from the prior outlook of 1.5 percent to 2.5 percent.

The growth will be underpinned by strong private investment, continued growth in household spending, exports and government expenditure, the agency said.

The expenditure-side of GDP showed that household spending rose 1.9 percent, weaker than the prior quarter's 3.3 percent growth. Similarly, the annual growth in government spending eased sharply to 0.2 percent from 3.4 percent.

At the same time, gross fixed capital formation registered an expansion of 9.1 percent but decelerated from 9.9 percent in the preceding period. Exports of goods and services expanded 12.5 percent after a 12.4 percent rise in the prior quarter. Likewise, imports of goods and services advanced 24.2 percent, surging from 21.4 percent in the prior quarter.

The government projected headline inflation to be within the range of 1.5-2.0 percent and the current account balance is expected to record a deficit equivalent to 1.2 percent of GDP this year.