Thailand’s economy experienced a slowdown in September, with declines in both exports and private consumption

In September, the Thai economy saw a slowdown in economic activities, with exports declining and private consumption and manufacturing production decreasing. Despite this, government spending increased, and foreign tourism receipts improved. Inflation increased across all major categories, and the current account surplus narrowed. The labor market remained stable, with improvements in tourism-related services employment but weaknesses in the construction and trade sectors.

Summary

• In the third quarter, the Thai economy expanded from the previous quarter. However, in September, economic activities slowed down as exports of goods declined after a strong growth in the previous month. Private consumption also declined, particularly in durables, consistent with a decrease in manufacturing production, while private investment was stable.
• Nonetheless, foreign tourism receipts improved. Government spending also expanded, driven by both current and investment expenditures by the central government, while investment expenditures by state-owned enterprises contracted, primarily in rail transport projects.
• On the economic stability front, in September, headline inflation increased across all major categories from the previous month. Energy inflation rose due to a low base effect from last year, which had benefited from government subsidies, while fresh food prices increased due to higher vegetable prices. Core inflation also increased, driven by higher prepared food prices.
• The current account surplus narrowed as the deficit in services, income, and transfers widened, primarily due to lower tourism revenue during the off-season and higher profit repatriation by foreign businesses, while the trade balance surplus remained unchanged. The labor market condition was stable from the previous month. Employment in tourism-related services improved, while the construction and trade sectors weakened, consistent with a slight increase in the ratio of unemployment claims to total insured persons.

Details of the economic conditions for September relative to the previous month are as follows:

Source : https://www.bot.or.th/en/news-and-media/news/news-20241031.html