FX.co ★ Thailand Q2 GDP Annual Growth Weakest in A Year

Thailand’s GDP expanded by 2.8% year-on-year in the second quarter of 2025, a slight deceleration from the revised 3.2% growth rate recorded in the first quarter, yet surpassing market predictions of 2.5%. This represents the most sluggish growth since the second quarter of 2024, primarily due to more modest increases in private consumption, which rose by 2.1% compared to 2.5% in the previous quarter, and government spending, which grew by 2.2% against 3.4% earlier. Conversely, fixed investment exhibited robust momentum, advancing to 5.8% from 4.7% in the previous quarter. On the international trade front, exports increased by 12.2%, slightly below the 12.3% growth in Q1, yet outstripping imports, which climbed by 10.8% following a 2.1% rise, thereby contributing positively to GDP. This strong export performance was partly driven by factories accelerating shipments in anticipation of newly implemented US tariffs. From a production perspective, growth decelerated in both the non-agricultural sector, down to 2.5% from 2.9%, and the agricultural sector, easing to 6.0% from 6.2%. For the first half of 2025, the economy grew by 3.0%. Looking ahead, full-year growth is anticipated to fall within a range of 1.8% to 2.3%, with a midpoint forecast of 2.0%, down from 2.5% in 2024.