Thai Economy Improves in Jan. on Strong Domestic Consumption, Inflation Reduces, BOT Says

The Bank of Thailand (BOT) said on Tuesday that the Thai economy has seen an improvement in January compared to a month prior. This was due to sustained growth in private consumption and service sector activity.

According to the note, private consumption indicators grew as a result of the government’s stimulus initiatives. Exports of goods, excluding gold, saw a minor improvement, in line with increases in manufacturing output and private investment. Despite a decline in foreign visitors, domestic tourists helped boost the service industry. Both current and capital expenditures of the federal government increased from the same period last year, said the BOT on Tuesday.

Inflation in energy and fresh food has fallen, in part because of the high base set last year, and this has led to a decrease in headline inflation, which is a positive sign for the economy, according to the BOT’s press release on the Economic and Monetary Conditions for January 2023

Even though core inflation was decreasing, it was still above target, the note added.

The labor market has been steadily rising alongside the economic recovery. The trade deficit was the primary contributor to the current account deficit, which was recorded despite a bigger surplus in the net service, income, and transfer balance.

In terms of the month of February, the manufacturing and property sectors are expected to stabilize from the previous month, while the majority of tourism-related businesses remain on track to recover.