Bangkok: Thailand's economy grew by 1.9 per cent year-on-year in the second quarter of 2026, marking a slowdown from the 2.8 per cent growth recorded in the first quarter, as detailed in a report by the National Economic and Social Development Council (NESDC) on Monday.

According to BERNAMA News Agency, total investment remained a significant driver of growth, expanding by 9.1 per cent, with private investment increasing by 13.4 per cent. This growth was largely driven by spending on machinery, equipment, and vehicles. In contrast, public investment saw a contraction of 1.6 per cent.

The NESDC report highlighted a surge in the value of goods imports, which increased by 42.3 per cent, while import volume rose by 27.7 per cent. This resulted in a current account deficit equivalent to 12 per cent of the gross domestic product during the quarter. The NESDC also revised the first quarter GDP growth to 2.8 per cent year-on-year and 0.6 per cent quarter-on-quarter.

For the entire year, the council forecasts the economy to grow between 2.0 and 2.5 per cent, with a midpoint forecast of 2.2 per cent, compared to its previous projection of 1.5 to 2.5 per cent. The report noted that tourism continued to expand, generating total revenue of 663 billion Baht, up 6.3 per cent from the previous quarter, with 6.55 million international tourist arrivals recorded in the second quarter.

Economic growth in 2026 is expected to be supported by continued strong private investment, household consumption, goods exports, and momentum from government spending and public investment. Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas stated that the GDP figures reflected an economy undergoing stabilization and transition, with strong private investment and technology exports aiding the New Economy.

Ekniti noted that the GDP figures were close to the Finance Ministry's previous estimates and confirmed the outlook anticipated by the economic team, especially concerning the impact of the conflict in the Middle East that began in late March. This conflict affected the economy, starting with the oil crisis and spreading to the cost of goods and living expenses, resulting in an increase in inflation to 2.7 per cent in the second quarter from minus 0.5 per cent in the first quarter. Consequently, private consumption growth slowed to 1.9 per cent from 3.3 per cent previously.

Despite the unsatisfactory GDP growth in the second quarter, Ekniti expressed confidence that the government's economic forecasts and measures were on the right track. He stated that the Thai economy is currently in a phase of 'stabilizing as it moves towards transition', aiming to return to its full growth potential in the longer term.