Thailand’s Central Bank Says Country’s Economy Firmly on Recovery Path Due to Rising Spending, Tourism

Thailand’s central bank said on Friday the country’s economy continued on the path to recovery in May due to increased public and private sector spending and improved investment, as well as tourism gathering pace, even as exports remained weak. 

According to a statement released by the Bank of Thailand (BOT), economic activity and tourist arrivals are both on the steady rise. The central bank projects 3.6% GDP growth for this year and 3.8% for next year, with the tourist industry playing a significant role in these projections.

Exports dropped 5.9% YoY in May, from a 4.9% YoY drop the previous month. Still, the drop was better than an 8% YoY decrease forecast for May in a Reuters poll.

Headline inflation, meanwhile, is on the downward trend due to lower energy costs, as well as lower electricity bills and domestic retail oil prices. However, the core rate of inflation showed a modest decline.

The volatility of global financial markets and the formation of a new government and its policies will be monitored in the future, according to the BOT.