World Bank2025-10-012025-10-012025-09-25https://hdl.handle.net/10986/43795Thailand’s economic momentum softened in Q2 2025 with growth lagging behind regional peers due to weak private consumption and tourism. High-frequency data confirmed this softening trend, with a slowdown in manufacturing and a continued drop in tourist numbers. However, investment and goods exports shored up the economy. On the policy front, the government remains committed to an expansionary fiscal stance, evidenced by a widening deficit, a larger FY2026 budget, and plans for additional stimulus. Inflation remained negative, creating room for potential monetary policy easing. The baht continued to be appreciated amid a strong trade surplus and portfolio inflows.en-USCC BY-NC 3.0 IGOTOURISMPRIVATE CONSUMPTIONINFLATIONBriefWorld Bankhttps://doi.org/10.1596/43795