Thai economy grows 1.9% in Q2 as households pull back, exports carry it
Thailand’s economy grew 1.9% in the second quarter, its slowest in a year. That is down from 2.8% in the first quarter. It is also better than economists expected, with a Reuters poll before the release pointing to 1.7%. The National Economic and Social Development Council published the figures on Monday. Underneath the headline the … The story Thai economy grows 1.9% in Q2 as households pull…
Thailand's economy expanded 1.9% in the second quarter, marking its slowest growth in a year. This figure, released by the National Economic and Social Development Council, fell short of economists' expectations, which were based on a Reuters poll projecting 1.7%. The breakdown reveals that private consumption contracted by 0.5% quarter-over-quarter, while government spending declined by 2.3%.
Private investment, on the other hand, surged by 13.4%, primarily driven by electronics and AI infrastructure. Exports of goods and services increased by 12.5%, aligning with the first quarter's performance. However, imports rose at a more rapid pace of 24.2%, leading to a decline in the headline growth rate. Despite the slowdown, the council's full-year projection for Thailand's economic growth remains optimistic, now forecasted between 2.0% and 2.5% for 2026.
This upward revision is attributed to the robust private investment surge, which has eclipsed the concerns surrounding weaker household spending and export growth.
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