Thailand's second-quarter growth seen slowing sharply as weak consumption weighs: Reuters poll

Thailand's economic growth is projected to slow significantly in the second quarter, with a potential contraction on a quarter-over-quarter basis, according to a Reuters poll of economists. The nation's largest economy may have expanded by 1.7% year-over-year in the April-June period, down from 2.8% growth in the previous quarter.

Private consumption is anticipated to be the primary factor in the slowdown, as households become more cautious due to rising costs and high debt levels. Tourism, a crucial component of Thailand's economy, is also expected to contribute minimally, with foreign arrivals declining by 3.2% year-over-year. Despite government efforts to boost demand through fiscal measures, high household debt and an aging population are expected to limit consumer spending.

Private investment, particularly in electronics and AI infrastructure, is anticipated to provide some relief, while exports are also likely to support growth, though this boost may diminish in the second half of the year.