Thailand Economic Growth Slows to 1.7 Percent in Q2

Economic growth in Thailand likely slowed sharply during the second quarter of 2026, with a median estimate of 1.7 percent expansion from a year earlier. This represents a significant decline from the 2.8 percent growth recorded in the previous quarter. A Reuters poll of 15 economists further projects a seasonally adjusted quarterly contraction of 0.6 percent.

Moody's Analytics and other analysts attribute the slowdown primarily to subdued household consumption. This drag was driven by an oil shock that increased costs for goods and services, alongside structural challenges including high household debt and an aging population. These factors have made households more cautious about spending.

Growth was partially offset by a 17.6 percent rise in exports during the first half of 2026 and private investment in electronics and artificial intelligence infrastructure. However, the Ministry of Commerce expects export growth to decelerate in the second half of the year. Additionally, tourism arrivals declined 3.2 percent year-on-year as of August 1, further pressuring the domestic economy.