Thailand Q2 growth seen slowing to 1.7% on weak consumption

Thailand's economic growth likely slowed sharply in the second quarter, with GDP expected to expand 1.7% year-on-year, down from 2.8% in the previous quarter. A Reuters poll of economists indicated a 0.6% contraction on a seasonally adjusted quarter-on-quarter basis. Subdued household consumption was identified as the main drag, with high debt levels and an ageing population constraining spending. Tourism, a key sector, provided less support due to geopolitical uncertainty and increased travel costs. However, private investment, particularly in electronics and artificial intelligence infrastructure, was expected to cushion the slowdown. Exports showed strength, rising 20.8% in June, though this boost may fade in the second half of the year. Economists forecast Thailand's economy to grow 2.4% in the third quarter and 2% for the full year, with the Bank of Thailand projecting 2.3% growth for 2026.