BANGKOK, Thailand – Deputy Prime Minister and Minister of Finance Ekniti Nitithanprapas shared his perspective on Thailand’s economic trajectory following the National Economic and Social Development Council’s (NESDC) announcement of a 1.9 percent GDP growth rate for the second quarter of 2026. The Deputy Prime Minister noted that the Q2 figure, though down from 2.8 percent in Q1, matches the Ministry of Finance’s forecasts and marks a key transition period for the country.
Ekniti identified three main points from the Q2 data. First, the Middle East conflict that escalated in late March caused inflation to rise to 2.7 percent in Q2, compared to a 0.5 percent contraction in Q1. Higher living costs slowed private consumption growth to 1.9 percent. To support purchasing power and avoid contraction, the government issued an emergency loan decree to fund the ongoing “Thais Help Thais Plus” relief program. The Ministry will review the program’s results in Q3 before considering any Q4 extensions to maximize national benefits.
Second, Thailand’s dependence on imported energy resulted in a current account deficit of 17.6 billion USD (about 600 billion baht) in Q2, reversing a 1.4 billion USD surplus in Q1. Ekniti stressed that the government’s 200-billion-baht energy transition initiative, which covers solar rooftops, grid upgrades, energy storage, and electric vehicles, is a crucial investment in the country’s “future infrastructure.” This borrowing is intended to reduce reliance on imports, protect the economy from global energy price volatility, and support the Ministry of Energy’s Power Development Plan (PDP).
Third, private investment was the strongest economic driver in Q2, rising by 13.4 percent, the highest in 11 years and the second straight quarter of double-digit growth. The Board of Investment’s (BOI) “Thailand Fast Pass” initiative generated 255 billion baht in investment, mainly in S-Curve sectors such as electronics, AI, clean energy, and agro-processing. As a result, exports of goods and services increased by 12.5 percent, strengthening Thailand’s role in the global New Economy supply chain.
While current GDP growth remains below expectations, the Deputy Prime Minister stated that the results support the government’s economic transition strategies. He added that Thailand is guiding its economy toward full potential and plans to share further details on short-, medium-, and long-term restructuring at a later date. (NNT)
