Thailand sees 2% growth and 3% inflation in 2026, central bank chief says

[BANGKOK] Thailand’s economy is expected to grow 2 per cent this year, central bank governor Vitai Ratanakorn told a news briefing on Tuesday (Jun 2).

Headline inflation was expected to reach 3 per cent this year and ease next year, he told reporters.

For 2027, growth was seen at 1.7 per cent and headline inflation at 1.4 per cent, the central bank said in a statement.

The annual inflation rate rose to 2.89 per cent in April, the highest rate in more than three years, due to higher energy costs.

The Bank of Thailand (BOT) was not worried about stagflation, Vitai said, and monetary policy will focus on inflation. “There was no need to raise rates to manage inflation,” he added.

The BOT held its policy rate steady at 1 per cent at a review in April. The next rate meeting is on Jun 24.

Key rates will remain steady unless the situation changes, Vitai said.

Thailand posted a record-high current account deficit in April as its economy slowed.

Vitai said that he was not worried about big trade and current account deficits for the year with the shortfalls expected to decrease and the current account balance not expected to change significantly.

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Exports this year are expected to grow by 12 per cent to 13 per cent, and the trade balance may return to a surplus in the fourth quarter, he noted.

The forecasts factored in government measures.

The government has launched a 176 billion baht (S$6.9 billion) consumer subsidy scheme, under which it will subsidise 60 per cent of the prices of certain goods to ease the cost of living.

Last month, Vitai said that growth was expected to hit 2.1 per cent this year. He has previously forecast growth of 1.6 per cent for 2027. REUTERS