FX.co ★ Thailand Q2 GDP Annual Growth Weakest in 3 Quarters

Thailand’s GDP grew by 1.9% year-on-year in Q2 2026, down from 2.8% in Q1 but exceeding market expectations of 1.7%. This was the slowest pace of expansion since Q3 2025, reflecting softer gains in key domestic demand components. Private consumption growth eased to 1.9% from 3.3% in Q1, government spending slowed markedly to 0.2% from 3.4%, and fixed investment growth moderated slightly to 9.1% from 9.9%. The deceleration in government expenditure was mainly attributable to weaker purchases of goods and services and lower social transfers in kind.

External trade remained robust, with both exports and imports accelerating. Exports rose 12.5% year-on-year, up from 12.4% in Q1, while imports surged 24.2%, compared with 21.4% previously.

On the production side, non-agricultural output growth slowed to 2.0% from 2.9% in Q1. This reflected continued, though moderating, expansions in the industrial sector (up 1.1%) and the services sector (up 2.4%), supported in particular by mining, quarrying, and utilities. Agricultural output also lost momentum, rising 1.5% compared with 2.0% in the previous quarter. Higher yields of fruits, sugarcane, rubber, cattle, and swine were partially offset by declines in oil palm, paddy, and fishery production.

Overall, the Thai economy expanded by 2.4% in the first half of 2026.