BANGKOK, Thailand – Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas disclosed that Thailand’s economy expanded by 2.8% in the first quarter of 2026, exceeding market expectations and reflecting continued recovery driven primarily by strong investment growth. After the Office of the National Economic and Social Development Council released first-quarter GDP figures, the Deputy Prime Minister noted the economy grew by 2.5% in the previous quarter. Private and public investment were key drivers, with private investment expanding 10.1%, the first double-digit increase in 11 years.
Ekniti said investment remains a critical engine for short-term stimulus and long-term growth. He linked the improvement to government measures such as the BOI Fast Pass program, which speeds up investment approvals, and noted that the policy environment helped Moody’s revise Thailand’s credit outlook from “negative” to “stable.” Exports expanded 17.8% in the first quarter, though the Finance Minister said future performance will depend heavily on global economic conditions due to Thailand’s reliance on exports.
Despite positive indicators, the Finance Ministry acknowledged ongoing risks from energy prices, inflation, and rising living costs, especially for SMEs facing higher operating expenses. The Deputy Prime Minister warned that without further measures, Thailand could face a “double squeeze” in which costs rise and incomes decline, potentially affecting employment and stability.
To address these challenges, the Finance Ministry will propose the “Thais Help Thais Plus” stimulus program to the Cabinet on May 19, 2026. The 200-billion-baht initiative, funded under the 400-billion-baht emergency loan decree, would subsidize consumer spending through small businesses nationwide with a 60:40 state-to-public contribution model. Additional measures under consideration include fertilizer subsidies for farmers and support for the transport sector to reduce energy costs as part of broader economic stabilization efforts. (NNT)
