Market Update: Thailand’s economy forecasted to grow 2% in 2026, with tourism and exports leading recovery – Full Analysis

Despite the positive outlook, Vinit warned of structural challenges still facing Thailand’s economy, including high household and SME debt, as well as global geopolitical risks that could pressure export performance.

“We must strengthen our domestic economy and expand our tax base through better integration of the informal sector,” he said. Vinit added that fiscal policies would need to focus on increasing tax efficiency, reducing the country’s reliance on external economic factors, and managing the risks posed by financial vulnerabilities and political transitions.

Regarding government spending, Vinit noted that public investment was expected to contract slightly in 2026 due to political uncertainties, as the new government will likely take time to implement their policy agenda. He stressed that quick action from the new government is needed to ensure smooth budget implementation.

To achieve sustained growth, Thailand will focus on investing in new industries, particularly those in technology, innovation, and digital infrastructure. This New S-Curve will be crucial for keeping the economy competitive in a rapidly changing global landscape. Vinit highlighted digital transformation as one of the pillars that would guide Thailand toward a more resilient economy.

Additionally, the government is exploring new public-private partnerships and creating a more supportive environment for SMEs, which play a crucial role in the economy.