Slower Q2 growth close to ministry's earlier estimate

Thailand's economy experienced a slowdown in the second quarter of 2026, with growth decelerating to 1.9% from 2.8% in the previous quarter. Finance Minister Ekniti Nitithanprapas confirmed the figures, stating they were in line with the ministry's earlier estimates and reflected the economic team's anticipated outlook.

The minister cited several factors contributing to the slowdown. The Middle East conflict, which began in late March, had a ripple effect throughout the second quarter, impacting the economy. Additionally, rising energy prices and weakening domestic demand played significant roles. Private consumption also slowed, decreasing to 1.9% from 3.3% in the first quarter.

The current account deficit widened significantly in the second quarter, reaching nearly $17.6 billion USD, compared to a surplus of $1.4 billion USD in the first quarter. This was partly due to higher energy prices, which increased production costs and dampened domestic consumption.

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To counter these economic pressures, the government is preparing to release remaining budget funds. These funds will be allocated towards infrastructure projects and energy transition initiatives, including solar rooftops, energy storage systems, and electric vehicle infrastructure. The minister emphasized the need to accelerate the transition from fossil fuels to clean energy.

Vice Finance Minister Santiaparb Thangsubutr added that Thailand's economy was hit by three waves of shocks: high energy prices, rising goods prices, and weakening domestic demand. He noted that the government must consider the results of the first phase of the 200-billion-baht clean energy transition program in the final quarter to ensure maximum benefit to the country. The government aims to maintain economic stability while addressing challenges and opportunities.

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