Thailand deficit highlights risk of oil dependence


Thailand's Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas. — Bloomberg

BANGKOK: Thailand’s 600 billion baht (US$17.6bil) current-account deficit in the second quarter of financial year 2026 (2Q26) exposes a structural weakness created by the country’s reliance on imported oil, Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas warns.

The deficit emerged as Thailand’s gross domestic product (GDP) expanded by 1.9% year-on- year, slowing from growth of 2.8% in 1Q26, according to figures released by the Office of the National Economic and Social Development Council.

Thailand recorded a current-account deficit of US$17.6bil in 2Q26, equivalent to more than 12% of GDP.

It was the country’s first deficit in eight quarters and marked a sharp reversal from a surplus of US$1.4bil in the preceding quarter.

Nitithanprapas said the deficit was another indicator of the Thai economy’s vulnerability.

Nitithanprapas attributed the vulnerability to the nation’s reliance on oil imported from Middle Eastern countries, particularly to support a transport sector that remains largely dependent on fossil fuels.

He said this left the economy highly sensitive to movements in global crude-oil prices, with higher import costs directly affecting the country’s economic stability. — The Nation/ANN

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