Thailand Q2 GDP Annual Growth Weakest in A Year

Thailand’s GDP grew by 2.8% year-on-year in Q2 of 2025, easing from an upwardly revised 3.2% expansion in Q1 but beating market expectations of 2.5%. This marked the slowest growth since Q2 2024, driven by softer increases in private consumption (2.1% vs 2.5% in Q1) and government spending (2.2% vs 3.4%). In contrast, fixed investment remained strong, accelerating to 5.8% from 4.7% in the previous quarter. On the external front, exports rose 12.2% (vs 12.3% in Q1), outpacing imports, which increased by 10.8% (vs 2.1%), contributing positively to GDP. The strong export performance was partly attributed to factories expediting shipments ahead of newly imposed US tariffs. On the production side, growth slowed in both the non-agricultural sector (2.5% vs 2.9%) and the agricultural sector (6.0% vs 6.2%). For the first half of 2025, the economy expanded by 3.0%. Full-year growth is projected to range between 1.8% and 2.3%, with a midpoint forecast of 2.0%, down from 2.5% in 2024.