The Bank of Thailand released its official press statement on the nation’s economic and monetary conditions for September and the third quarter of 2025. The report reveals a slowdown in overall economic activity, primarily due to reduced manufacturing output and subdued private investment, despite resilience in exports.
The overall Thai economy softened in the third quarter compared to the previous quarter. On the supply side, economic activity slowed due to a decline in manufacturing output, reflecting temporary production halts in certain products, which also dampened related service sector activities. On the demand side, domestic demand moderated, particularly in private investment, while foreign tourism receipts declined. In contrast, merchandise exports rose, driven by good performance in the electronics sector.
Compared to the previous month, the economy showed improvement in September. Manufacturing output rose as temporary disruption gradually subsided, which in turn supported stronger service sector activity, particularly in trade and transport. External demand expanded, reflected in higher tourist arrivals and increased receipts, especially from short-haul travelers. Merchandise exports, excluding gold, continued to grow, fueled by strong demand for electronics. However, domestic demand softened, as both private investment and consumption moderated.
On the economic stability front, headline inflation was negative in the third quarter, mainly due to falling raw food and energy prices, while core inflation remained in positive territory. Labor market conditions were broadly stable, and the current account recorded a surplus. In September, headline inflation was slightly less negative than the previous month, the impact of last year’s high energy prices faded. Core inflation remained positive but edged lower, partly due to promotional campaigns on food delivery and personal care items. Labor market conditions continued to hold steady, and the current account registered a surplus, supported by a strong trade balance.
