Thailand Q2 growth of 1.9% trails ASEAN peers

Thailand's economy grew by 1.9% year-on-year in the second quarter of 2026, making it the slowest-growing of six major ASEAN economies tracked by the National Economic and Social Development Council (NESDC).

NESDC Secretary-General Danucha Pichayanan announced the figures on Monday, saying growth had slowed markedly from 2.8% in the first quarter. On a seasonally adjusted basis, the economy contracted 0.2% from the previous quarter.

Vietnam recorded the fastest expansion at 8.4%, followed by Malaysia on 6%, Singapore on 5.9%, Indonesia on 5.29% and the Philippines on 2.3%.

Thailand's economy grew 2.4% in 2025, also the lowest rate among the same group. In the first quarter of 2026, it was level with the Philippines at 2.8%.

Spending and public investment weaken

The second-quarter slowdown reflected softer private consumption, a sharp deceleration in government consumption and falling public investment, Danucha said.

Private consumption rose 1.9%, down from 3.3% in the first quarter, while consumer confidence fell to 50.3, its lowest reading in 14 quarters. Government consumption rose only 0.2%, against 3.4% previously, while public investment shrank 1.6% after growing 9.4% in the first quarter.

Several major sectors also lost momentum. Manufacturing grew 0.1%, down from 1%, while agriculture, accommodation and food services each expanded 1.5%. Transport and storage rose 2.6%, and construction nearly stalled, growing 0.1% after a 6.2% increase in the previous quarter.

Exports and investment support a higher forecast

Private investment was a notable exception, rising 13.4% from 10.1% in the first quarter. NESDC said this was the strongest increase in 54 quarters, or since the fourth quarter of 2012.

Goods exports rose 17.6%, led largely by electronics and high-tech products. Telecommunications equipment exports surged 129%, while computer parts and equipment increased 65.5%.

Despite the weak quarter, NESDC lifted its full-year growth forecast to 2.0%-2.5%, with a midpoint of 2.2%. Its previous forecast was 1.5%-2.5%.

The revised outlook is based on stronger export prospects, higher anticipated spending by foreign tourists, stronger private investment and a modest improvement in private consumption. Export growth is now forecast at 15.1%, up from 9.6%.

NESDC expects foreign-tourist revenue of 1.65 trillion baht, compared with its earlier forecast of 1.49 trillion baht. That expectation will be closely watched by expats and tourism businesses, particularly in destinations where visitor spending supports hotels, restaurants, transport and other services.

Private investment is forecast to grow 9.6%, sharply higher than the previous 3.7% estimate, while private-consumption growth was revised to 2.6% from 2.4%.

Danucha warned that the outlook still faces risks from global economic and trade uncertainty, weaker global demand, possible El Nino effects on agriculture in the second half, high household debt and ongoing credit risks for small and medium-sized businesses.

Join the discussion?

18 August 2026