The Thai economy improved due to increased manufacturing, services, and private investment. Tourism rose slightly, and while exports to the U.S. slowed, import activity suggests potential growth. Key issues include trade policies and tourism developments.
Key Points
- The Thai economy improved from the previous month, following increased activities in the manufacturing production, service sector, as well as private investment.
- Manufacturing production improved across several categories, particularly in passenger car, in line with improvement in passenger car sales. Production in some categories also increased due to inventory replenishment following an export surge in the preceding period.
- The number of foreign tourists slightly increased after a significant slowdown in the preceding period but continued to display negative growth compared to the same period last year.
- The adverse impact from the U.S. trade policy has not yet materialized. Private investment continued to expand. Although exports to the U.S. slowed slightly, they remained at a high level. Additionally, imports of raw materials and components picked up, suggesting that exports to the U.S. may accelerate in the near term before new tariffs take effect.
- Key issues to monitor: 1) trade policies of major economies, 2) developments in the tourism sector, 3) adaptation of the manufacturing sector amid structural challenges and increased competition, and 4) fiscal support and its economic impact
The Thai economy improved, driven by manufacturing, trade, and transport, with private investment rising in machinery and equipment, and government spending expanding. Tourism slightly improved but was still contracted. Merchandise exports and private consumption declined. Headline inflation was slightly negative due to falling energy prices, while core inflation rose. The current account had a deficit primarily from a trade deficit, yet the labor market saw slight improvement.
Source : Press Release on the Economic and Monetary Conditions for April 2025
