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Thai economy under pressure from weak purchasing power

The Kasikorn Research Centre anticipates that the Thai economy will slow down in the second half of the year compared to the first half, with the "Thai Chuay Thai Plus" initiative offering some support to consumption in Q3 2026.

At a supermarket in Bangkok, Thailand (Photo: Xinhua/VNA)
At a supermarket in Bangkok, Thailand (Photo: Xinhua/VNA)

Bangkok (VNA) – The Kasikorn Research Centre has maintained its forecast for Thailand's economy in 2026 at 2%, according to the local media.

It anticipates that the Thai economy will slow down in the second half of the year compared to the first half, with the "Thai Chuay Thai Plus" initiative offering some support to consumption in Q3 2026.

However, the Thai economy still faces risks from the ongoing conflict in the Middle East, uncertainties surrounding US trade measures, and the El Nino phenomenon, which could pressure inflation to rise in Q4 2026. The average inflation rate for 2026 is expected to be 1.8%, while the Bank of Thailand is likely to maintain the policy interest rate at 1%.

The Thai Government is considering the extension of the “Thai Chuay Thai Plus” 60/40 co-payment scheme to ease the cost of living. Around 26 million people have used it, while 13 million have benefited from state welfare cards, bringing the total number of beneficiaries to around 40 million.

The Ministry of Finance is expected to reach a decision on the matter by late September./.

VNA
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