# Thai economy continued to expand in the second quarter (BoT)

- Link: https://www.thailand-business-news.com/banking/154438-thai-economy-continued-to-expand-in-the-second-quarter-bot
- Published: 2024-08-02T08:37:00+07:00
- Author: Nguyen Trang

**Thai economy expanded in Q2, but slowed in June due to decline in foreign tourists,
exports, and production. Private consumption stable, private investment slightly
up, government spending expanded. Inflation decreased, current account surplus higher,
trade balance similar, labor market improving.**

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 * The Thai economy saw a decrease in foreign tourist arrivals and tourism revenue
   in June, but an increase in tourist arrivals from the United States, Australia,
   and India.
 * Private consumption remained stable, with increased spending on non-durables 
   but decreased spending on durables, semi-durables, and services, reflecting declining
   consumer confidence.
 * The Thai economy experienced a mixed performance in the second quarter, with 
   expansion driven by the tourism sector and government spending, while facing 
   challenges such as suppressed exports and production in some industries.

In June, Thailand experienced a decrease in foreign tourist arrivals, leading to
a decline in tourism revenue. Private consumption remained stable, with increased
spending on non-durables but decreased spending on durables and services. Merchandise
exports decreased in several categories, while merchandise imports increased in 
various goods.

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Manufacturing production index decreased, particularly in the automotive sector.
Private investment indicators increased, and public spending expanded due to the
enactment of the Budget Act. Headline inflation decreased, while core inflation 
remained similar. The Thai economy continued to expand in the second quarter, driven
by the tourism sector and increased private consumption. However, some industries
experienced suppressed exports and production due to high inventory levels and structural
factors. The labor market improved, and government spending expanded significantly.

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 * The Thai economy continued to expand in the second quarter. However, economic
   activities in June slowed down compared to the previous month. This was primarily
   due to a decline in the number of foreign tourists and tourism revenue, which
   accelerated in the preceding period.
 * Additionally, exports of goods decreased, particularly agricultural products 
   as its production entered the end of its season, and electronic products that
   still have high inventories. These developments were in line with lower agricultural
   and industrial production.
 * Private consumption remained stable, whereby higher spending on non-durable goods
   was being offset by a continuous decline in durable goods, especially in the 
   automotive sector. However, private investment slightly increased. Government
   spending also expanded from the previous year in both current and capital expenditures
   of the central government, while investment expenditures of state-owned enterprises
   contracted due to lower disbursements in infrastructure and public utility projects.
 * On the economic stability front, headline inflation in June decreased from the
   previous month from energy and fresh food categories. This was driven by lower
   benzene prices in line with the global crude oil prices, as well as lower vegetable
   prices as a result of increased output. Meanwhile, core inflation remained similar
   to the previous month.
 * The current account registered a higher surplus, due to a lower deficit of services,
   income, and transfers, while the trade balance registered a similar surplus to
   the previous month. The labor market continued to improve steadily in both the
   service and manufacturing sectors.

**Source** : [https://www.bot.or.th/en/news-and-media/news/news-20240731.html](https://www.bot.or.th/en/news-and-media/news/news-20240731.html?rand=113190)