# Thai economy improved in April with growth driven by tourist arrivals

- Link: https://www.thailand-business-news.com/banking/143950-thai-economy-improved-in-april-with-growth-driven-by-tourist-arrivals
- Published: 2024-06-03T10:42:29+07:00
- Author: Boris Sullivan

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**In April, the Thai economy saw improvement, bolstered by growth in the service
sector due to an increase in tourist arrivals. There was a rise in domestic demand,
marked by an upswing in private consumption and investment. Additionally, exports,
inflation, and the labor market exhibited encouraging indicators.**

## Key Takeaways

 * The Thai economy saw an increase in foreign tourist arrivals and tourism revenue,
   particularly from Muslim tourists, Chinese, and Russian visitors, following the
   end of Ramadan and a rebound in the tourism sector.
 * Private consumption indicators showed growth across major categories, driven 
   by increased spending on services, non-durable goods, and durable goods, although
   consumer confidence was slightly impacted by concerns over economic recovery 
   and higher living costs.
 * Private investment indicators exhibited growth, with increased investment in 
   machinery and equipment, construction, and a rise in the manufacturing production
   index, despite some declines in merchandise exports and imports.

---

## Summary

 * The Thai economy improved from the previous month with a continued expansion 
   in the service sector thanks to an improvement in tourist arrivals and revenue,
   following an end of the Ramadan fasting season. In terms of domestic demand, 
   both private consumption and investment picked up after a slowdown in the preceding
   period. Exports of goods, excluding gold, increased in several categories and
   was in line with higher manufacturing production. However, government spending
   continued to contract due to the delay of the Budget Act, B.E. 2567, while investment
   from state-owned enterprises displayed a good expansion thanks to a front-loaded
   disbursement of utility projects.
 * On the economic stability front, headline inflation turned positive from higher
   raw food prices in vegetable and pork. Energy inflation also increased due to
   higher benzene and diesel prices, which picked up after the reduction measures
   of excise tax came to an end. Core inflation remained stable from the previous
   month. The current account was approximately balanced with trade surplus being
   offset by a deficit in the service, income and transfers. The labor market slightly
   improved mainly from higher employment in service sector.

**Source** : [https://www.bot.or.th/en/news-and-media/news/news-20240531.html](https://www.bot.or.th/en/news-and-media/news/news-20240531.html?rand=113190)