Economic and Monetary Conditions for August 2024

Thai economic activity remained steady, with private consumption and merchandise exports improving. Government spending increased, but tourism slowed and private investment declined. Inflation decreased, while the current account surplus grew. Labor market conditions improved.

Summary

• The overall Thai economic activity remained at a similar level compared to the previous month. Private consumption slightly increased, mainly in non-durables. Merchandise exports improved across several categories, although some of these improvements were temporary.
• Government spending expanded, driven by both current and investment expenditures from the central government, as well as investments by state-owned enterprises. However, the tourism sector slowed down due to a decrease in foreign tourist arrivals, following a period of good expansion.
• Meanwhile, private investment declined, particularly in machinery and equipment. Industrial production also contracted, partly due to accelerated activity in the previous period and high inventory levels across several categories.
• On the economic stability front, headline inflation decreased from the previous month, mainly due to lower energy inflation, driven by both the high base effect from last year and the decline in gasoline prices in line with global oil prices.
• However, core inflation increased, primarily due to higher prices of prepared food. The current account registered a larger surplus from an improvement in the trade balance as a result of lower imports, while the deficit in the services, income, and transfers slightly widened from the previous month. Labor market conditions improved overall, supported by higher employment in both the manufacturing and services sectors.

Source : https://www.bot.or.th/en/news-and-media/news/news-20240930.html