# Thai economy slowed down in March 2024 (BoT)

- Link: https://www.thailand-business-news.com/banking/138753-thai-economy-slowed-down-in-march-2024-bot
- Published: 2024-05-01T02:23:17+07:00
- Author: SiamNews PR

**The Thai economy slowed in March 2024, with softening domestic demand and tourism.
Despite signs of improvement in the first quarter, growth is expected to remain 
low year-on-year, driven by tourism and private investment, while exports and manufacturing
lag due to weak global demand. Headline inflation improved, but the current account
surplus decreased, and the labor market showed slight improvement.**

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Summary

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 * The Thai economy slowed down in March 2024 as domestic demands and tourism sectors
   softened after expanding well in the preceding periods and partly because the
   benefits from the Easy E-Receipt campaign dissipated. Despite this slowdown, 
   the economy showed signs of improvement in the first quarter compared to the 
   previous one.
 * But the overall growth was likely to remain low on a year-on-year basis. The 
   tourism sectors continued to be the main driver of economic activity within the
   service sectors, leading to increased employment. Private investment also increased,
   particularly in new industries and services. On the other hand, exports and manufacturing
   production remained stagnant due to weak global demand and structural factors
   that suppressed production.
 * Private consumption declined, particularly in durable goods, despite an improvement
   in non-durable goods. Government spending also contracted due to the delay of
   the 2024 budget.
 * On the economic stability front, in March, headline inflation was less negative
   due to higher fresh food inflation, as the high base effect diminished in conjunction
   with increases in vegetable and fruit prices. Energy inflation also increased,
   following increases in benzene prices in line with the global crude oil prices.
   Meanwhile, core inflation decreased due to a high base effect and a decline in
   personal goods prices due to several promotional campaigns. The current account
   showed a smaller surplus due to a lower trade surplus.
 * The labor market slightly improved, but employment in the manufacturing sector
   warranted close monitoring. On a quarterly basis, headline inflation in the first
   quarter declined from both fresh food and energy categories. The current account
   registered a higher surplus thanks to higher travel receipts. The labor market
   condition slightly deteriorated, mainly due to lower employment in the manufacturing
   sector.

Foreign tourist arrivals and tourism revenue decreased after seasonal adjustment,
mainly due to lower Muslim tourists, especially from Malaysia and the Middle East,
during the Ramadan fasting season. Chinese tourists also declined following a significant
increase during the Chinese New Year festival in the previous month.

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**Source** : [https://www.bot.or.th/en/news-and-media/news/news-20240430.html](https://www.bot.or.th/en/news-and-media/news/news-20240430.html?rand=113190)