Thailand's economy grew more than expected in the second quarter on government spending, figures from the National Economic and Social Development Board revealed Monday.
Gross domestic product climbed 3.5 percent year-on-year, faster than the 3.2 percent expansion seen in the first quarter. The economy was expected to grow 3.3 percent in the second quarter.
The Southeast Asia's second-largest economy expanded 0.8 percent sequentially, following the revised 1 percent increase a quarter ago.
In the first half of the year, the economy grew 3.4 percent.
The agency retained its growth projection for this year at 3-3.5 percent. The NESDB forecast exports to drop 1.9 percent this year and household consumption to rise 2.7 percent.
Krystal Tan, an economist at Capital Economics, said the recent bombings in some of the country's key tourist destinations present a significant downside risk to economic activity. The economist expects Thailand's growth to ease further, to 2.5 percent, next year.
On the expenditure side, household spending gained 3.8 percent largely driven by higher car sales. Government spending grew 2.2 percent annually.
Government investment advanced 10.4 percent and private investment edged up 0.1 percent. Tourist arrivals increased 8.2 percent from a year ago.
Inflation is seen in the range of 0.1-0.6 percent and the current account surplus at 9.8 percent of GDP, the NESDB said.
The central bank kept interest rate unchanged at 1.50 percent for a tenth consecutive policy session in August.
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April 24, 2026 15:15 ET Economics news flow was relatively light this week even as the conflict in the Middle East continued, raising concerns for policymakers. In the U.S., spending data, initial jobless claims and pending home sales were the highlights. Business confidence in the biggest euro area economy was in focus in Europe. Inflation data from Japan gained attention in Asia.