Thai economy improved in September driven by exports and private investment

The Thai economy improved overall in September from the previous month. Merchandise exports excluding gold increased markedly, driven by electronics exports amid the global technology and AI cycle.

Private investment also accelerated significantly, in line with higher imports of data processing equipment related to data centers, which was also reflected in a corresponding increase in manufacturing production. In the tourism sector, foreign tourism receipts increased from the previous month, supported by longer average stays, despite a decline in foreign tourist arrivals, particularly from short-haul markets where demand weakened following the end of the summer school holiday period.

Key Points

• The Thai economy improved overall in September from the previous month, driven by continued growth in merchandise exports and private investment, supported by the global technology and artificial intelligence (AI) cycle and investment in data centers in Thailand. Meanwhile, tourism-related activities weakened, in line with declines in both Thai and foreign tourist arrivals. Private consumption moderated, mainly in the services category, as elevated cost of living continued to weigh on consumer spending.
  
• The Thai economy improved in the third quarter compared to the previous quarter, driven mainly by continued growth in merchandise exports as supported by the global AI cycle. Domestic demand also improved, driven by both  private investment, particularly in machinery and equipment, as well as higher private consumption, partly supported by government measures. However, tourism-related activities softened in line with lower foreign tourist arrivals, particularly from short-haul markets.
   
• Headline inflation increased in September, driven by higher energy prices in line with rising global oil prices following renewed tensions in the Middle East. Meanwhile, fresh food and core inflation remained broadly stable from the previous month.
  
• Key issues to monitor: (1) the durability of the global technology and AI cycle, (2) developments in geopolitical conflicts and international trade protectionist policies, (3) the recovery of the tourism sector, and (4) the impact of flooding and El Niño.

Source : https://www.bot.or.th/en/news-and-media/news/news-20261030.html