BANGKOK, June 10 (Xinhua) -- Thailand's economy is expected to expand 1.6 percent to 2 percent this year, up from a 1.2 percent to 1.6 percent seen earlier, driven by a surge in technology exports and domestic stimulus measures, a leading business group said on Wednesday.

The Thai Joint Standing Committee on Commerce, Industry, and Banking also raised its 2026 export growth projection to 8 percent to 10 percent, following an 18.9 percent increase in shipments during the first four months of the year.

Despite the global megatrend of investment in artificial intelligence and data centers, the group cautioned against a widening "K-shaped" trajectory, as the tech boom relies heavily on imported raw materials, providing restricted support to the broader Thai economy.

Meanwhile, domestic consumption remains slowed due to the rising cost of living, though it is currently being buoyed by the government's stimulus packages, said Payong Srivanich, chairman of the Thai Bankers' Association.

In a statement, Payong noted that global energy security continues to be a primary pressure point because of unresolved conflicts in the Middle East and disruptions to shipping through the Strait of Hormuz.

However, he assured that Thailand maintains solid energy security, as local refineries have successfully mitigated risk by slashing their reliance on Middle Eastern crude oil and sourcing from alternative markets.