Bangkok: Thailand's Ministry of Finance has revealed a significant economic milestone, highlighting a 2.8% growth in the nation's GDP for the first quarter of 2026. This growth, surpassing market expectations, was largely fueled by an impressive 10.1% surge in private sector investment, marking the highest rate of expansion in over a decade.
According to Thai News Agency, Deputy Prime Minister and Minister of Finance, Ekniti Nitithanprapas, announced these findings after the National Economic and Social Development Council (NESDC) released the GDP report. The data signifies a continued recovery from the previous quarter's growth of 2.5%, driven by both private and public sector investments. Mr. Ekniti emphasized the importance of investment as a key economic driver, which not only stimulates short-term economic activity but also enhances long-term growth potential. He credited the BOI Fast Pass measures for expediting investment project approvals, contributing to a recent upgrade in Thailand's credit outlook by Moody's Rating from 'negative' to 'stable'.
The report also highlighted a 17.8% growth in exports for the first quarter, while noting that future growth will be contingent on the global economy. Given Thailand's historical reliance on exports, Mr. Ekniti stressed the need to accelerate investments to leverage this export-driven economy for boosting domestic growth.
Despite the positive economic indicators, the Ministry of Finance acknowledges ongoing challenges due to the energy price crisis, inflation, and rising living costs. These factors, while not reflected in GDP figures, impact the inflation rate and purchasing power, particularly affecting SMEs facing increased costs.
In response to these challenges, the Ministry plans to propose the "Thai Help Thai Plus" stimulus package to the Cabinet. Valued at 200 billion baht, the initiative is part of a 400 billion baht borrowing decree aimed at alleviating living costs and supporting consumer purchasing power. The government will cover 60% of the costs, with the public contributing 40%, to stimulate spending through small retailers nationwide. Additional measures will support farmers and the transportation sector to reduce energy costs, with discussions planned with relevant ministries.
Mr. Ekniti underscored the crucial role of fiscal policy in maintaining economic stability, advocating for its strategic use alongside balanced monetary policy. He warned of the risks of a "double squeeze" on the economy if further measures are not implemented, emphasizing the need for effective fiscal policy to manage short-term impacts and strengthen long-term economic stability.