The government is poised to launch a fresh round of stimulus measures, targeting agriculture specifically, in an effort to ward off downside risks to economic growth as the recovery sputters along.
"We expect economic growth of 3.5% or higher in the third quarter," said Finance Minister Apisak Tantivorawong.
"However, we see signs of a slowdown from sales of cement and commercial cars, reflecting waning consumption and investment. The government will not let the economy slow.
"When a negative sign is detected, we must start pumping the economy. We're preparing measures to cope with the stuttering economy. The farming sector is one that can benefit from stimulus to boost consumption. We can't reveal the measures, but we will let you know when the time comes."
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The Thai economy surpassed expectations to grow 3.3% year-on-year in the first quarter this year and 3.5% in the second, thanks largely to public investment and the burgeoning tourism sector. A batch of economic stimulus was recently launched with the aim of putting money into the hands of those hit hardest by the economic doldrums: rural people and small and medium-sized enterprises.
The Bank of Thailand increased its Thai economic growth forecast last week to 3.2% this year from 3.1%, while the Finance Ministry's Fiscal Policy Office is more optimistic with a projection of 3.3%.
Even though growth has exceeded expectations, private investment remains the most important engine for driving economic growth and it remains tepid as the private sector is still hesitant to spend, he said.
But government investment incentives have drawn some companies to invest, said Mr Apisak, and without them the country's economy might not have expanded.
He said the IMF has warned Thailand's private investment is stagnant despite the country's economy being among the most secure among emerging nations and the government launching a spate of investment incentives.
The IMF admitted global economic uncertainty is a drag on investment and it is not certain whether the global economy will recover in the next few years with the fragile US economy and spluttering European economy.
The government will urge state enterprises to ramp up their investment to prevent a slowdown, said Mr Apisak.
"Our state enterprises have an enormous amount of assets, over 10 trillion baht, and their investment could trigger a spree in the private sector. I've already instructed the State Enterprise Policy Office to tell all state enterprises that have investment projects in the next two years to accelerate their investment next year," he said.