The Bank of Thailand has raised its economic growth forecast for 2026 to 2.1%, up from the previous estimate of 1.5%, with Governor Vitai Ratanakorn citing the government’s planned 400 billion baht borrowing programme as a key factor behind the improved outlook.
Thailand’s GDP growth is also projected to accelerate to 2.6% in 2027, according to Mr Vitai.
Earlier this week, the Thai cabinet approved an emergency decree authorising 400 billion baht in borrowing to finance consumption stimulus measures and green energy projects. Mr Vitai noted that the central bank’s earlier forecast had been based on a smaller borrowing figure of 300 billion baht.
The government’s borrowing plan is currently facing legal scrutiny, with the Democrat Party seeking a Constitutional Court review over the necessity of the decree. However, the government remains confident in the policy direction.
Mr Vitai also warned that inflation is expected to rise during the third quarter, driven by economic stimulus spending and support measures aimed at helping vulnerable groups cope with elevated energy prices.
Under the upcoming “Thai Help Thai Plus” programme, eligible participants are expected to receive 1,000 baht per month over four months, beginning in June, for a total of 4,000 baht in support.
According to Thailand’s Ministry of Commerce, headline inflation rose 2.9% in April, marking the highest level in more than three years due largely to rising energy costs.
For the full year, inflation is projected to remain between 1.5% and 2.5%, staying within the central bank’s target range of 1% to 3%.