The National Economic and Social Development Council of Thailand released data on the 17th showing that Thailand’s GDP in the second quarter of 2026 grew by just 1.9% year-on-year, the lowest growth among the six major ASEAN economies in the comparison, and a significant slowdown from the 2.8% in the first quarter. After seasonal adjustment, Q2 GDP shrank by 0.2% quarter-on-quarter.
According to a report from Thailand Headline News, Danucha, Secretary-General of the National Economic and Social Development Council, stated that the slowdown in Thailand’s Q2 economic growth was mainly dragged down by weak private consumption, a sharp slowdown in government consumption, and contraction in public investment.
Data shows Vietnam led the six countries with Q2 economic growth of 8.4%; Malaysia grew by 6%, Singapore by 5.9%, Indonesia by 5.29%, and the Philippines by 2.3%, all higher than Thailand.
The sluggish state of Thailand’s economic growth has lasted for some time. In 2025, Thailand’s economic growth was 2.4%, also ranking at the bottom among the six major ASEAN economies. In the first quarter of this year, Thailand’s economic growth rate was 2.8%, tied with the Philippines for the lowest.
Despite the weak Q2 performance, the National Economic and Social Development Council has raised its full-year GDP growth forecast for Thailand in 2026 from the previous 1.5%-2.5% to 2.0%-2.5%, with a median prediction of 2.2%.
Outlook Faces Multiple Risks
The Council stated that the upward adjustment to the annual growth forecast is mainly based on improved export prospects, expected increase in foreign tourist spending, continued strong private investment, and a slight improvement in private consumption.
However, Danucha noted that Thailand’s economic outlook still faces multiple risks, including uncertainties in the global economy and trade environment, possible slowing global demand, potential impact of El Niño on agriculture in the second half of the year, high household debt, and continuing credit risks faced by SMEs.