Thai economy expanded in Q2 but slowed in June due to decline in foreign tourists, exports, and production. Private consumption stable, private investment up, government spending expanded. Inflation decreased, current account surplus higher, trade balance similar, labor market improving.
Thai Economy Performance in Q2
The Thai economy expanded in the second quarter but experienced a slowdown in June due to a decline in foreign tourists, exports, and production. Private consumption remained stable, while private investment slightly increased. Government spending expanded, leading to a higher current account surplus and similar trade balance. The labor market showed signs of improvement in this period.
Impact of Decrease in Tourist Arrivals and Exports
Thailand saw a decrease in foreign tourist arrivals and tourism revenue in June, along with suppressed exports and production in some industries. Private consumption was stable with a shift towards increased spending on non-durables. The manufacturing production index decreased, particularly in the automotive sector, while private investment indicators increased.
Challenges and Positives in the Economy
Despite challenges such as suppressed exports and production, the Thai economy continued to expand in the second quarter driven by the tourism sector and increased private consumption. Inflation decreased, government spending expanded, and the labor market showed steady improvement. The current account surplus increased, while the trade balance remained similar. Overall, the economy faced mixed performance in Q2 with both positives and challenges impacting its growth.
Source : Thai economy continued to expand in the second quarter (BoT)
