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

Thailand's economic growth is anticipated to decelerate significantly in the second quarter, according to a Reuters poll of economists. The country's economy may have contracted in the April-June period compared to the previous year, with growth slowing from 2.8 percent in the previous quarter to 1.7 percent in the median estimate.

This slowdown is primarily attributed to subdued household consumption, which outweighed support from exports and private investment. The tourism sector, a crucial component of Thailand's economy, is also expected to contribute minimally to growth as foreign arrivals dropped by 3.2 percent year-on-year. Other factors constraining growth include an aging population, high household debt, and weak productivity, which hinder both investment and domestic consumption.

However, private investment, particularly in electronics and artificial intelligence infrastructure, is projected to help mitigate the slowdown. Despite these challenges, Thailand's economy is still expected to grow by 2.4 percent in the third quarter and 2 percent in 2026, according to a Reuters poll.