The Bank of Thailand reported that Thailand’s economy improved in September and the third quarter of 2026, driven by merchandise exports excluding gold and stronger private investment. The global technology and artificial intelligence cycle supported electronics exports, while data center investment contributed to higher equipment imports and manufacturing production. Tourism remained weaker, with fewer foreign arrivals despite longer average stays. In September, stronger investment contrasted with moderating private consumption, particularly spending on hotels and restaurants, as elevated living costs constrained consumers. Government spending contracted as disbursements by the central government and state-owned enterprises declined. Foreign tourism receipts increased because visitors stayed longer, although arrivals fell, particularly from nearby markets, following the summer school holidays and amid higher travel costs. Headline inflation rose as renewed Middle East tensions pushed up oil prices, while fresh food and core inflation remained broadly stable. The current account recorded a deficit, mainly reflecting the services, income and transfers balance. Over the third quarter, private consumption strengthened across almost all categories. Higher electric vehicle sales supported durable goods spending, while government measures temporarily supported spending on non-durable goods and services. Government spending increased from a year earlier. Headline inflation declined from the previous quarter as energy prices fell, although core inflation rose, mainly because businesses passed higher costs through to prepared food prices. The current account returned to surplus as the trade balance improved. Employment covered by social security increased slightly, but the rising share of unemployment benefit claimants warranted close monitoring, including pressures from war-related costs and competition from imports.

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