In June, Thailand’s economy stayed stable with rising private consumption and exports, despite a decline in manufacturing and tourism. Future monitoring includes geopolitical impacts, tourism recovery, and inflation trends.
Summary
- The Thai economy in June remained broadly stable from the previous month. Private consumption increased, supported in part by government measures and continued growth in electric vehicle sales. Merchandise exports and private investment also increased, driven mainly by technology-related products, although these activities relied heavily on imported inputs. Meanwhile, manufacturing production declined across several categories, while tourism-related services softened in line with lower foreign tourist arrivals.
- In Q2/2026, the Thai economy slowed from the previous quarter, in large part due to higher energy prices and travel disruptions related to the conflict in the Middle East. Tourism receipts, foreign tourist arrivals, and tourism-related services declined. Private consumption and manufacturing production also softened despite support from government measures toward the end of the quarter. Nevertheless, the economy remained supported by the global electronics upcycle and data center investment, which contributed to sustained growth in private investment and merchandise exports. Imports increased significantly, driven by higher imports of crude oil and electronic parts.
- Headline inflation in June declined from the previous month, mainly due to lower energy prices in line with global crude oil prices. Meanwhile, core inflation increased, reflecting the gradual pass-through of higher input costs to personal care products and prepared food.
- Key issues to monitor: (1) developments in the Middle East conflict and U.S. trade policy, (2) the recovery of the tourism sector, (3) the impact of elevated living and production costs on households and businesses, (4) the effectiveness of government support measures, and (5) El Niño developments.
Source : https://www.bot.or.th/en/news-and-media/news/news-20260731.html
