Thai business group raises 2026 growth forecast to 2.4-2.6pct
BANGKOK: Thailand’s economy is expected to grow 2.4-2.6 per cent this year, up from a previous forecast of 2.1-2.5 per cent, helped by stronger manufacturing and exports, a leading business group said on Wednesday.
Bangkok - The Thailand economy is projected to grow by 2.4-2.6 percent in 2026, according to a leading business group. This upward revision comes from stronger manufacturing and exports, which are key drivers of growth. Thai exports are expected to increase by 18-22 percent, a significant jump from the previous forecast of 12-16 percent. This data indicates that Southeast Asia's second-largest economy had a 2.4 percent growth last year, behind its regional counterparts.
The Joint Standing Committee on Commerce, Industry and Banking disclosed that the change in the methodology used for Thailand's manufacturing production index revealed that factory output expanded by 2.6 percent during the first nine months of 2026, contrary to a contraction under the earlier measurement.
Thai businesses also propose raising the excise tax on imported electric vehicles to 35 percent to foster local production. This change is anticipated to stimulate domestic car production by seven percent, reaching 1.55 million units in 2027. Pimjai Leeissaranukul, chairperson of the Federation of Thai Industries, revealed these plans during a briefing.
The auto and parts sector makes up approximately 10 percent of Thailand's GDP and provides employment for over 800,000 individuals. It encompasses more than 3,000 small and medium-sized suppliers. Thailand functions as a significant regional center for car manufacturers like BYD and Toyota.
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