# Thai economy improved in July driven by exports and tourism

- Link: https://www.thailand-business-news.com/banking/159497-thai-economy-improved-in-july-driven-by-exports-and-tourism
- Published: 2024-09-03T09:53:22+07:00
- Author: SiamNews PR

**In July, Thailand’s economy saw improvement, bolstered by exports and tourism,
alongside a rise in private investment. Despite this, consumer and business confidence
waned, and inflation escalated, primarily due to elevated prices of fresh food. 
While the labor market showed signs of improvement, unemployment claims saw an uptick,
and there was a notable increase in government expenditure.**

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## Key Takeaways

In July, export of electronic products, agro-manufacturing products, and chemical/
petro-chemical products increased, but there were declines in pick-up truck exports.

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Foreign tourist arrivals remained stable, but tourism revenue rose due to higher
average spending per visitor, especially from tourists from Russia and Germany.

Private investment indicators showed improvement, with increases in machinery/equipment
investment and construction, but business sentiment continued to decline, especially
in the automotive, real estate, and retail sectors.

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Summary

 * The Thai economy showed improvement after a slowdown in the previous month, driven
   by rising external demand. Increases in exports and tourism revenue positively
   affected manufacturing and related service sector activities. Private investment
   increased from the previous month, while private consumption remained stable.
   However, consumer and business sentiment continued to decline, partly due to 
   concerns over slow economic growth. Government spending expanded from the previous
   year in both current and capital expenditures of the central government, although
   investment spending by state-owned enterprises contracted due to lower disbursements
   in transportation projects.
 * On the economic stability front, headline inflation rose compared to the previous
   month, driven by higher prices in the fresh food category and increased core 
   inflation. Fresh food prices went up due to a low base effect and a rise in fruit
   prices following reduced output. Core inflation increased mainly from higher 
   prices of prepared food. The current account registered a lower surplus primarily
   due to a smaller trade surplus resulting from higher import of goods, while the
   services, income, and transfers account showed a deficit close to the previous
   month. The labor market continued to improve as employment increased in both 
   manufacturing and service sectors. Nevertheless, the ratio of jobless claims 
   to total contributors edged up and warranted close monitoring.

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

**Source** : [https://www.bot.or.th/en/news-and-media/news/news-20240830.html](https://www.bot.or.th/en/news-and-media/news/news-20240830.html?rand=113190)