The Thai economy grew modestly due to increased merchandise exports, improved private consumption, and a stronger services sector, despite inflation being slightly negative and a current account deficit. Key issues include flooding, U.S. tariffs, and government stimulus.
Summary
- The Thai economy registered a modest month-on-month expansion, supported by improvements in both demand and supply-side indicators.
- Demand side: Merchandise exports, excluding gold, continued to grow, mainly driven by technology-related products. Foreign tourist receipts increased in line with higher tourist arrivals, while private consumption improved across nearly all categories.
- Supply side: Activity improved, primarily in the services sector, although manufacturing production remained broadly unchanged.
- Labor market conditions improved, particularly employment in the services sector.
- Headline inflation was slightly negative, mainly due to lower energy and raw food prices. The current account recorded a deficit, mainly due to the trade deficit.
- Key issues to monitor: The impact of (1) the flooding situation, (2) U.S. tariff affecting Thai exports, and (3) government stimulus measures.
The Thai economy moderately improved in October. Merchandise exports excluding gold expanded, led by electronic products. Foreign tourist receipts also increased in line with higher arrivals. Private Consumption improved, partly supported by government measures, which also boosted the service-sector activities. However, manufacturing production was broadly unchanged, as higher electronics production was offset by a decline in petroleum output due to temporary maintenance shutdowns. Meanwhile, private investment contracted, mainly in machinery and equipment, following accelerated investment in the previous period.
Source : https://www.bot.or.th/en/news-and-media/news/news-20251128.html
