BANGKOK, Thailand – Thailand’s economy grew 1.9% year-on-year in the second quarter of 2026, slowing from 2.8% growth in the first quarter, but the Finance Ministry says the figures confirm that government measures to cushion the economy are moving in the right direction. Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas said the latest figures, released by the Office of the National Economic and Social Development Council (NESDC), were broadly in line with the ministry’s expectations.
Ekniti said the Middle East conflict that began in late March had started to affect Thailand during the second quarter, particularly through higher energy costs and inflation. Consumer inflation rose to 2.7% in the quarter, compared with a 0.5% contraction in the first quarter, while private consumption growth slowed to 1.9% from 3.3%. He said the government’s emergency borrowing decree and the Thai Help Thai Plus program were intended to protect household purchasing power and ease the impact of higher living costs. A decision on extending the program into the final quarter will depend on the results of its first phase, which ends in the third quarter, and the budget available. The minister also highlighted Thailand’s vulnerability to imported energy. The current account swung to a deficit of US$17.6 billion in the second quarter, compared with a surplus of about US$1.4 billion in the first quarter.
Ekniti said Thailand therefore needs to accelerate its transition away from imported fossil fuels. A proposed 200-billion-baht energy transition program covering rooftop solar, electricity grids, energy storage and electric vehicles is intended to build long-term infrastructure, reduce fuel imports and limit exposure to volatile global energy prices. Despite the slowdown, private investment emerged as a major bright spot. It expanded 13.4% in the second quarter, the fastest rate in 11 years, following 10.1% growth in the first quarter. Ekniti attributed part of the increase to the Board of Investment’s Thailand Fast Pass initiative, with actual private investment reaching 255 billion baht during the quarter.
Investment was concentrated in emerging industries including electronics, artificial intelligence, clean energy and agricultural processing. Exports of goods and services also remained strong, accelerating from 12.1% growth in the first quarter to 12.5% in the second. Electronics were among the leading export products, reflecting global demand and Thailand’s growing role in new industrial supply chains.
Ekniti said the figures indicate that Thailand is already becoming part of the global “New Economy,” with investment increasingly moving toward advanced industries and technologies. “Although the second-quarter GDP figure is not yet satisfactory, it confirms that our forecasts and economic measures are moving in the right direction,” Ekniti said. He said the government is now focused on cushioning the economy while accelerating its transition toward stronger growth, with the second-quarter figures showing early signs that new economic engines are beginning to emerge.
