Thailand's Economic Growth Faces Challenges Amid Middle East Conflict, Economist Says

Thailand's economy is expected to face difficulties in 2026 despite recent government stimulus measures, according to a report by Gareth Leather, a senior economist at Capital Economics. According to Jin10, Leather noted that government subsidies should help prevent inflation rates from significantly deviating from the Bank of Thailand's target range of 1% to 3%. However, he highlighted that Thailand's economy is encountering growing headwinds from the ongoing Middle East conflict. As one of the largest net energy importers in the region, Thailand is vulnerable to current supply shocks, which are expected to slow economic growth from now onwards. Capital Economics maintains its forecast for Thailand's growth at 2.0% in 2026, slightly lower than the 2.4% growth rate in 2025.