Thai Economy Shows Steady Improvement in May despite Inflationary Pressures, Says BOT

Thailand’s economy continued to improve in May from the previous month, with both exports and imports seeing expansion, resulting in a trade surplus of US$1,985 million, after consumption, private investment, and foreign tourist figures recovered, according to the Bank of Thailand on Thursday.

In May, Thai exports expanded by 11.3%, while imports rose 23.3%, resulting in a trade surplus of US$1,985 million.

The central bank said that private consumption and private investment indices have increased in line with improving economic activity. External demand also performed well.

Demand from trading partners boosted practically all export categories, while the number of foreign visitors continued to surge as Thailand and other countries lifted travel restrictions.

However, manufacturing output fell due to a shortage of production parts and materials, as well as a drop in public spending, mainly due to lower capital expenditures.

On the economic stability front, headline inflation accelerated mainly from energy inflation as a result of higher electricity and domestic retail oil prices. Labor market gradually improved as the economy recovered.