BANGKOK, July 24 (Xinhua) -- Thailand's economy is projected to expand 2.5 percent in 2026, up from 1.6 percent seen earlier, due to a rebound in private investment and consumption underpinned by government stimulus, the Ministry of Finance said on Friday.
Exports, a key driver of the Southeast Asian country's economic growth, are expected to grow 12.5 percent this year, an upward revision from the 6.2 percent rise in the April estimate, thanks to improving demand from major trading partners, the ministry said in a statement.
Merchandise exports expanded during the first five months of the year, averaging 10.9 percent growth, led by industries recovering in line with the global economic cycle, said Vinit Visessuvanapoom, director general of the ministry's Fiscal Policy Office.
Private consumption is forecast to increase 2.7 percent, with the help of government measures to ease the impact from the energy crisis, Vinit told a news conference.
Private investment is projected to surge 9 percent, fueled by continued strong expansion in machinery and equipment investment and rising capital inflows into state-promoted projects under the Thailand FastPass mechanism, he said
The official noted that efforts to remove regulatory obstacles have boosted foreign investor confidence in establishing production bases in Thailand, with total foreign investment value in the first half of 2026 reaching 187 billion baht (about 5.55 billion U.S. dollars), up 68.3 percent from the same period last year.
Looking ahead, the ministry cited downside risk factors, including highly volatile conflict in the Middle East, which could again push up energy prices, alongside uncertainty over new trade barriers and a potential "super El Nino" weather pattern that could bring extreme heat and drought conditions later in the year.
The upgraded outlook reflects a slight acceleration from the 2.4 percent growth recorded in 2025. ■