The Bank of Thailand stated that, in August 2020, the Thai economy improved slightly, held up by lighter contractions in merchandise exports value, manufacturing production, and private investment indicators.

According to the release on economic and monetary conditions for August 2020, issued by the Bank of Thailand on 30 September, the value of merchandise exports contracted by 8.2 percent from the same period last year.

Manufacturing production had a softer contraction in almost all categories, aligning with the gradual recovery in the merchandise exports and domestic spending. Private investment indicators marked lighter contraction as compared to the previous month, mainly from investment in machinery and equipment.

Public spending, excluding transfers, had greater expansion. However, private consumption indicators contracted further after the positive effects of a special extended holiday in the previous month terminated. They were still on a recovery path in line with factors supporting consumer purchasing power.

Meanwhile, the tourism sector persistently experienced severe contraction. Thailand received no foreign tourist arrivals for the fifth consecutive months as international travel restrictions remained in place.

On the economic stability front, headline inflation recorded a softer negative on the back of the increase in fresh food and energy prices.

Labor market improved but remained vulnerable. The current account was a surplus largely contributed by gold exports. The capital and financial accounts posted a deficit owing to the liability position.

Source : The Government Public Relations Department

About the author

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Sign Up for Our Newsletter

Get notified of our weekly selection of news

You May Also Like

Thailand braces for growth aftershocks from Ukraine war

The coming sanctions against Russia will also likely hurt not only Russia but also the US, the West, and emerging markets, especially if they are highly dependent on the export of goods and service like Thailand.

Which emerging markets are looking to bolster electric vehicle production?

Thailand is not alone in the region when it comes to building up its EV capacity, with Indonesia also unveiling a series of measures in recent years.

How can Emerging Asia escape a post-COVID inequality trap?

The uneven impact of the global health crisis on Emerging Asia has challenged real disposable incomes and hit the region’s poorest the hardest.