Economy
Thailand’s Economic Performance Slows in Second Quarter of 2026
The Bank of Thailand reports a second-quarter economic slowdown driven by global energy costs and reduced tourism, despite growth in the technology export sector.
According to a report from the Bank of Thailand cited by Khaosod Online, the Thai economy remained stagnant in June 2026, with the second quarter showing a broad slowdown compared to the first. The central bank attributes this trend primarily to the ongoing conflict in the Middle East, which has significantly impacted the global economy and driven up energy prices.
For residents and travelers, this shift is most visible in the service sector. The hospitality, hotel, and restaurant industries have experienced a notable decline, exacerbated by a drop in tourist arrivals from the Middle East and Europe and a reduction in flight availability due to rising fuel costs. Private consumption has also decreased as the rising cost of living offsets government support measures. While fuel consumption and electric vehicle sales have cooled, the technology sector remains a bright spot, with continued growth in electronics exports and data center investments.
Looking ahead, the Bank of Thailand anticipates that economic growth and household consumption will remain concentrated in the third quarter. While government stimulus efforts are in place, the high cost of living remains a persistent challenge. It remains to be confirmed how long these inflationary pressures will persist and whether further government interventions will be introduced to stimulate domestic demand.
Translated from Thai.
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