Thailand’s economy experienced a slowdown, driven by temporary declines in services and manufacturing. However, exports showed growth, and tourism registered modest improvements. Closely tracking factors such as U.S. trade policies and developments in the tourism sector remains crucial.
Summary
- The Thai economy softened from the previous month driven by a slowdown in the service sector and manufacturing production due to temporary factors, despite a rise in merchandise exports.
- Revenue from foreign tourism declined, reflecting reduced spending per trip amid promotional campaigns aimed at boosting visitor numbers. Meanwhile, total arrivals edged up slightly, supported by an increase in Chinese tourist arrivals.
- Manufacturing production declined due to temporary factors, including refinery maintenance and short-term halts in automobile production for process adjustments. Excluding these disruptions, industrial production improved.
- Merchandise exports increased, led by strong growth in exports of electronics and appliances, with continued growth in shipments to the U.S.
- Employment conditions remained broadly stable, though rising unemployment claimants relative to the number of insured workers warrants close monitoring.
- Key issues to monitor include: 1) the impact of U.S. trade policies, 2) the performance of the tourism sector, 3) developments at the Thai–Cambodian border and their effects.
The Thai economy experienced a slowdown in July compared to the previous month, primarily due to a decline in service sector activity. Weaker domestic and international tourism led to reduced tourism revenue, while manufacturing output also contracted, impacted by temporary factors such as refinery maintenance and short-term pauses in automobile production for process adjustments. Despite these disruptions, industrial production showed improvement, bolstered by robust merchandise exports.
Private investment weakened, driven by lower spending on machinery and equipment. In contrast, private consumption remained relatively stable but continued to grapple with challenges from declining consumer confidence. Government expenditure increased, supported by higher central government spending and greater investment by state enterprises.
Source : https://www.bot.or.th/en/news-and-media/news/news-20250829-2.html
