Thai Economic Outlook for 2026 Shows Low Growth, Risks Falling Below 2%

Kriangkrai Thiennukul, President of the Federation of Thai Industries, revealed that the Joint Private Sector Committee (JPSC) is concerned about Thailand's economic outlook for 2026, with growth projected to be below 2%. The Fiscal Policy Office forecasts reduced government spending, especially in investment sectors. Latest data from the Comptroller General's Department shows investment budget disbursement at 176,655 million baht, representing only 21.57% - below the 26% target and reflecting delays in public investment projects. The committee predicts economic growth of 1.6-2%, with exports potentially contracting by -1.5% to -0.5% and inflation at 0.2-0.7%. Geopolitical factors and US tax policy uncertainties are considered the primary risks for the global economy. At least 9 additional Thai product categories face import taxes worth 45,000 million US dollars, representing 63% of Thailand's exports to the US, with semiconductors experiencing a 53% expansion. The JPSC hopes for a smooth political transition post-election to ensure economic policy continuity, reduce regulations, and support SME competitiveness in line with the 'Reinvent Thailand' approach for sustainable growth.