Thai economy in July grew with support from global technology and AI cycle, calm from Middle East conflict, and government stimulus. Exports, tourism, consumption, manufacturing, and government spending showed positive trends. Key issues to watch are technology cycle sustainability, geopolitical conflicts, tourism recovery, government measures, and El Niño impact.
Summary
- The Thai economy in July expanded from the previous month, supported by the ongoing global technology and artificial intelligence (AI) cycle, the easing of disruptions from the Middle East conflict, and government stimulus measures.
o Merchandise exports continued to expand, driven primarily by electronics products. Meanwhile, private investment softened following strong growth in the previous period.
o Tourism receipts and foreign tourist arrivals increased, mainly supported by the gradual recovery in flight capacity, particularly on long-haul routes.
o Private consumption increased, driven by higher spending on services, supported by government measures and improved domestic tourism activity during the extended holiday period.
o Manufacturing and service activities improved, in line with higher merchandise exports and tourism activity.
o Government expenditure expanded, driven by higher disbursements by both the central government and state-owned enterprises.
- Headline inflation declined, mainly due to lower energy prices, while core inflation increased slightly, reflecting the gradual pass-through of higher costs to consumer prices.
- Key issues to monitor: (1) the sustainability of the global technology and artificial intelligence cycle, (2) developments in geopolitical conflicts and international trade protectionist policies, (3) the recovery of the tourism sector, (4) the impact of government measures, and (5) El Niño developments.
Source : https://www.bot.or.th/en/news-and-media/news/news-20260831.html
